Ranchero Gold Corp. has entered into an options agreement with Recharge Resources Ltd. (Recharge). Through this agreement, Ranchero has the opportunity to acquire a 100% interest in the Pinchi Lake Nickel Project (Pinchi Project).
The project comprises six mineral tracts covering 3,917 hectares located 15 to 30 kilometers northwest of Fort St. James and 120 kilometers northwest of Prince George in central British Columbia.
The Pinchi project represents a promising nickel exploration effort that contains awaruite (Ni 2 Fe-Ni 3 Fe), a natural nickel-iron alloy containing approximately 75% nickel, 25% iron and no sulfur. This follows a comprehensive assessment by a previous owner, including a 1,055 line kilometer high-resolution survey conducted by helicopter in 2011, and a geochemical sampling initiative.
Recharge also conducted additional geochemical sampling in 2021. It is worth noting that the Pinchi project is hampered by an existing royalty of 2% of net smelter earnings, which is liable to third parties.
Under the terms of the option agreement, Ranchero has the potential to acquire a 100% interest in the Pinchi project, while Recharge will receive a 1% royalty on the smelter's net proceeds. To perform this Agreement:
1. Ranchero needs to issue 835,000 common shares for Recharge. The offering must take place within five business days of Ranchero's approval of the agreement by the TSX Venture Exchange.
2. As part of the terms of the option agreement, Ranchero is obligated to make a specified cash payment to Recharge. These payments include $25,000 due within one year of signing the agreement, $2 million due within two years, and finally $3 million due within one year of signing the Agreement.
3, Ranchero must allocate a total of $1.2 million for the exploration and development of the asset by November 30, 2026. This distribution requires at least $40,000 to be distributed by June 30, 2024, an additional $60,000 to be distributed by November 30, 2024, and an additional $100,000 to be distributed by November 30, 2025.
