Cross River Ventures Corp. (CRVC:CSE; CSRVF:OTC; C6R:FWB) announced in a news release it was granted the option, by the existing owners, to acquire 100% of the Lower Manitou gold project in Ontario, Canada.
To exercise the option, the Vancouver, British Columbia-based explorer must make cash payments and issue shares to the owners in three tranches over two years. It will pay $26,000 and issue 200,000 common shares upon execution of the option agreement and on the one year anniversary of that event. On the two-year anniversary, Cross River will pay a final $26,000.
The existing owners will hold a 1.5% royalty on commercial production from the project. However, at any time, Cross River may purchase half of that royalty for $500,000 in cash.
With the Lower Manitou project acquisition, Cross River would expand its Manitou property to 6,570 hectares. Lower Manitou consists of various mineral claims that "host four historic gold occurrences including numerous shafts and workings dating back to the late 1800s," the release noted. Only limited historical drilling has been done there, in 1983.
"The most notable mineralization has been found around the Reliance Prospect; a 2-km long NNE striking zone of well-defined sulfide bearing, quartz flooded shearing over a 20 ft width," the company reported. "The addition of the Lower Manitou claims will allow Cross River to systematically explore these prospective shear zones over an 8km long strike-length to identify targets with the highest chance of significant endowment."
The company noted that "field crews are scheduled to begin prospecting and ground-truthing on the property in mid May, with an initial focus on assessing these mineralized structures and prospecting along these trends to extend mineralization potential."
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