Banks Island Gold Ltd. Announces Option Agreement with Subsidiary of Imperial Metals Corporationadmin
Banks Island Gold Ltd. a private corporation, is pleased to announce the signing of an option agreement to earn a 100% interest in the “Banks Island Mineral Property” (the “Property”), subject to certain conditions, from Selkirk Metals Corp. (“Selkirk”), a subsidiary of Imperial Metals Corporation. The terms of the agreement require the Company to issue to Selkirk that number of shares in the Company equal to 5% of the all issued shares, to carry out in four stages an aggregate of $3,250,000 in Exploration Work on the Property by December 31, 2014 and to reserve to Selkirk a 2% NSR Royalty. Should Banks Island Gold Ltd. successfully complete the terms of the agreement, Selkirk also maintains a “back in” right for up to 51% of the Property, following which a joint venture would be created to further develop the Property.
This property includes the “Yellow Giant Gold Property” and is located 105 km south of Prince Rupert, BC on the west central side of Banks Island on tidewater. The Property is in an area of previous mining exploration which included extensive diamond drilling and underground development. The Property covers 12,025 hectares and includes drill defined high-grade gold resources in four deposits in addition to many exploration targets both around the known mineralized zones and in unexplored structures favorable to gold mineralization.
The Company is currently preparing a 43-101 report in anticipation for a listing on the TSX-V. Banks Island Gold Ltd. looks forward to working with all stakeholders and communities and is committed to the highest standards of environmental and socio-economic sustainability.