Shares of GoldON Resources (OTCMKTS:NCMBF) have been under pressure over the past week with a fall of 15%.
On Wednesday, NCMBF stock ended flat at $0.1367 with 13k shares, compared to its average volume of 3.3K shares. The stock has moved within a range of $0.1367 – 0.1367 after opening trade at $0.14.
GoldON Resources Formally Signs Option Agreement to Acquire Springpole East property
GoldON Resources (OTCMKTS:NCMBF) has officially entered into an option agreement with Gravel Ridge Resources and 1544230 Ontario, to acquire a 100% interest in the Springpole East property. It is mostly situated in the Keigat Lake Area Township of the Red Lake Mining District, Northwestern Ontario, and consists of 13 contiguous mining claims covering 5,186 hectares. The property is accessible via a new all-weather road being built that has been completed to the southern claim boundary and apparently runs right through the claim block.
Located within the Birch-Uchi Greenstone Belt of the northern Uchi Subprovince, the property consists of greenstone mafic to felsic volcanic sequences intercalated with clastic and chemical sediments, which have been intruded by pre to syn-tectonic felsic to mafic intrusives and syn to post-tectonic mafic to ultra-mafic rocks. As of now, not much is known about the underlying geology, but airborne magnetics show a very active structural environment.
As per the terms of the option agreement, GoldON can acquire a 100% interest in the property for cash payments that come to $87,000 over three years. $17,000 is upon regulatory acceptance, $15,000 on the first anniversary, $20,000 on the second anniversary, and a final payment of $35,000 on the third anniversary.
There is the issuance of 200,000 common shares too, with 100,000 upon regulatory acceptance and 100,000 shares on the first anniversary. Optioners retain a 1.5% net smelter returns royalty, of which the GoldON may repurchase 0.5% for $500,000.
NCMBF stock is trading below the 20-Day and 50-Day Moving averages of $0.1765 and $0.1537 respectively. However, the stock is trading below the 200-Day moving average of $0.2243.