Wedoany.com Report-Feb 27, Olympio Metals, a West Australian exploration company, has signed a binding letter of intent with Bullion Gold Resources, a Canada-based firm, to secure an option for up to an 80% interest in the Bousquet Gold Project. This project lies along the Cadillac-Lake Larder Fault Zone in Quebec, Canada, near the Rouyn-Noranda gold-copper mining hub and the Bousquet Mining Camp, areas known for significant mineral output.

Bullion is divesting Bousquet to prioritise its large Bodo polymetallic project.

Bullion Gold Resources is shifting its focus to the expansive Bodo polymetallic project, allowing Olympio Metals to step into a promising gold exploration area. The deal’s initial payment includes C$100,000 in cash, equivalent to $70,052, and C$50,000 in Olympio shares. These payments are due within five business days of signing the formal option agreement. Additional payments, spread over eight years, combine cash and shares, with Olympio able to expedite them if desired. Shares issued will be held under a voluntary four-month escrow period.

Olympio can exit the agreement at any point. If it opts out after the third year, a joint venture will be established. The company must also make performance payments tied to announcing a JORC gold resource with a minimum average grade of 1.4 grams per tonne. These payments vary depending on the resource size, with defined caps for different ounce levels. To secure the option, Olympio is committed to exploration spending, starting at C$300,000 in the first year and reaching a total of C$2 million by the eighth year.

Sean Delaney, managing director of Olympio Metals, stated: “Acquiring the advanced Bousquet Gold Project presents a significant opportunity for Olympio to expand our exposure to one of the world’s premier gold-bearing structures – the renowned Cadillac Break. The project is strategically positioned between substantial gold deposits to the east and west, with numerous high-grade gold prospects featuring gold both at surface and in drilling. This makes Bousquet an exceptional exploration target.”

The Bousquet Gold Project includes several sites ready for drilling. Olympio plans to start permitting for exploration at prospects like Paquin East and Decoeur. The company will also analyze historical geophysical data and conduct structural studies to refine drill targets. The project’s location and geological features enhance its potential as a key focus for Olympio’s growth in the gold sector.

This agreement marks a strategic move for Olympio Metals to strengthen its presence in a globally recognized gold region while maintaining flexibility in its financial and operational commitments. The terms ensure a balanced approach, allowing exploration to proceed without immediate overburden, supported by a structured payment schedule and clear exit options.