02:59:15 EDT Tue 01 Jul 2025
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Bullion Gold Resources Corp (2)
Symbol BGD
Shares Issued 66,917,473
Close 2025-02-24 C$ 0.05
Market Cap C$ 3,345,874
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Bullion Gold grants option to sell 80% of Bousquet

2025-02-24 19:28 ET - News Release

Mr. Guy Morissette reports

BULLION GOLD GRANTS OPTION ON ITS BOUSQUET PROJECT TO OLYMPIO METALS

Bullion Gold Resources Corp. has signed a letter of intent with Olympio Metals (ASX: OLY), allowing the latter to acquire up to 80 per cent of the Bousquet gold project, located in Abitibi, Que.

A strategic project in Abitibi

The Bousquet gold project, wholly owned by Bullion Gold, comprises 71 mining cells covering 2,369 hectares. It hosts several gold showings along an east-west-trending corridor of approximately 2.5 kilometres, close to major mining infrastructure. Historical exploration has reached a depth of 300 metres, while neighboring mines (Westwood, La Ronde and Lapa) have revealed high gold grades at depths of over 1,200 m.

Located over eight km along the world-renowned Cadillac-Larder Lake fault, the project is at the heart of an exceptional mining environment where over 100 million ounces of gold have already been extracted. Several operating mines (Westwood, La Ronde, Canadian Malartic, Macassa) and projects under development (Galloway, Wasamac, Kerr Addison, Heva) are present there.

"We consider this agreement to be very favourable for our shareholders. It will allow us to focus our efforts on our vast Bodo project, north of Chibougamau, which covers 410 square kilometres and has strong potential in nickel, copper, zinc, cobalt, lithium, gold and silver. According to MRNF data, this project could host a copper porphyry, a VMS-type deposit or a classic polymetallic deposit," said Guy Morissette, chief executive officer of Bullion Gold.

Option agreement details

To obtain up to an 80-per-cent interest in the Bousquet project, Olympio Metals will:

  • Invest $2-million in exploration work;
  • Pay a total of $1.25-million in cash and shares;
  • Manage the exploration work;
  • Ultimately, Bullion Gold will retain a 20-per-cent undivided interest.

Term of the agreement for 51-per-cent interest

Olympio will pay Bullion Gold:

  • Upon approval by the authorities:
    • $100,000 in cash;
    • $50,000 in Olympio Metals shares.
  • Deferred payments:
    • Year 2: $100,000 in cash plus $50,000 in Olympio Metals shares;
    • Year 3: $150,000 in cash plus $50,000 in Olympio Metals shares.

Conditions for an additional 29 per cent

  • Years 4 to 6: $50,000/year in cash plus $25,000/year in Olympio Metals shares;
  • Year 7: $150,000 in cash plus $75,000 in Olympio Metals shares;
  • Year 8: $200,000 in cash plus $100,000 in Olympio Metals shares.

All issued shares will be subject to a four-month voluntary escrow.

Formation of a joint venture (JVA)

If Olympio Metals decides to exit the project once it has acquired 51 per cent of the project, a joint venture will be formed and:

  • Bullion will become the operator and will automatically obtain 51 per cent in the project;
  • Olympio's interest will be reduced to 49 per cent;
  • The project will continue to be developed on a pro rata basis with standard dilution factors.

Performance bonuses (National Instrument 43-101)

Olympio will pay the following bonuses based on indicated gold resources or equivalent:

  • $1.50/ounce up to 250,000 ounces (maximum $375,000);
  • $1.00/ounce from 250,001 to 500,000 ounces (maximum $625,000 including above);
  • 50 cents/ounce beyond 500,000 ounces (no maximum).

Exercise of the option

Olympio may exercise the option at any time for eight years, subject to:

  • A progressive exploration investment (at a rate of $2-million over eight years);
  • Payment of the defined consideration;
  • Satisfaction of conditions precedent (such as due diligence and regulatory approvals).

Bullion Gold residual rights

  • Olympio will provide financing for the project until initial production;
  • Bullion will retain a right of first refusal on the sale of its interest;
  • If Olympio purchases the remaining 20 per cent, Bullion will receive a 2-per-cent net smelter royalty (1 per cent can be bought back for $1-million).

This press release was read and approved by Gilles Laverdiere, PGeo, director, and qualified person under National Instrument 43-101.

About Bullion Gold Resources Corp.

Bullion Gold is involved in the identification, exploration and development of viable mineral properties in the province of Quebec. The company is developing the 100-per-cent-owned Bousquet and Bodo SM projects.

We seek Safe Harbor.

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