The 100% Almadex-owned Merit Project covers an area of epithermal gold-silver veining and is about 1,700 hectares in size. The property is easily accessed by road, 30 km west from the city of Merritt. Previous work includes surface sampling, mapping, geophysics and drilling.
In February 2019, Almadex announced an option agreement with Independence Gold Corp. (“Independence”, TSXV: “IGO”), whereby Independence would hold the right to acquire a 60% interest in the Merit property.
Independence may earn a 60% interest in the Merit property by making a cash payment of $10,000 (paid), the issuance of an aggregate of 650,000 common shares (200,000 issued) and completing work commitments of $725,000 including a commitment to drill 1,000 m over a three year period. Upon completion of the 60% earn-in, Independence and the Company will form a joint venture for the purpose of carrying out further exploration work on the Merit property. If either party’s participation interest falls below 15%, their interest will be converted into a 2% NSR royalty.
On November 4th, 2019, Independence announced the discovery of seven distinct gold-silver targets at the property.
This 100% Almadex-owned projects covers roughly 2,600 hectares prospective for epithermal gold silver mineralization. Previous work includes surface sampling, mapping and geophysics.
Almadex optioned the Nicoamen property to Independence at the same time as the Merit property (above). The option terms are identical to those for the Merit property.
On November 14th, Independence announced the results from their summer program on the Nicoamen property. Results included the discovery of four distinct gold targets that host gold mineralization in chalcedonic quartz veins.
The Ponderosa property is 100% owned by Almadex and was acquired by staking in late 2005. The claim covers 41.5 hectares. The property is located 25 km southwest of Merritt, B.C. and has good road access. Previous work includes surface sampling, mapping, geophysics and drilling.
On September 11, 2019 Almadex announced that it had optioned 60% of its Ponderosa project to 1201361 BC LTD., a private B.C. company at arms-length to Almadex. This Company subsequently changed its name to AuGold Corp. and is trading on the TSX-V under the symbol AUGC.
Under the terms of the agreement, AUGC can acquire a 60% interest in the Project by:
1.) Issuing Almadex 5% of its issued capital on a fully diluted basis on closing, with a top-up to this amount at the time of a “liquidity event”;
2.) Completing $500,000 in work, including 500 metres of drilling, on the Project within three years, and;
3.) Completing a “liquidity event” within four years.
Amongst other things, a “liquidity event” is some form of transaction which results in the Optionee’s, or its affiliates’, common shares becoming publicly traded on a recognized stock exchange.
Upon completion of the 60% earn-in, Almadex and the Optionee have agreed to immediately form a 40/60 joint venture for the purpose of carrying out further exploration work on the Project with Optionee as operator and straight line dilution for failure to participate in work programs. If either party’s participating interest falls below 10%, their interest will be converted into a 2% net smelter returns royalty.