Ranchero Gold Option Agreement for Pinchi Lake Nickel Project

Ranchero issued 835,000 common shares to Recharge Resources and will pay $18,531.62 in the first year.

Canada-based exploration and development company Ranchero Gold has entered into an option agreement with Recharge Resources, Inc., to acquire a full interest in the Pinchi Lake nickel project in British Columbia.

Under the terms finalized in November 2023, Ranchero Gold agreed to issue 835,000 common shares to Recharge Resources.

The shares have already been issued, commencing a four-month holding period ending on July 13, 2024. The deal awaits final approval from the TSX Venture Exchange.

Terms of agreement

In addition to the share issue, Ranchero Gold has committed to making a series of cash payments to recharge the resource over the next three years.

These include C$25,000 (US$18,531.62) in the first year, C$2 million in the second year, and C$3 million on the third anniversary of the agreement.

The option agreement also stipulates that Ranchero must finance exploration and development work at the property in the amount of C$1.2 million by November 30, 2026. The timeline for financing exploration and development work is designed with specific milestones.

The Ranchero must invest at least C$40,000 by June 30, 2024, followed by another C$60,000 by November 30, 2024 and C$100,000 by November 30, 2025.

The Pinchi project is a potential nickel exploration project, containing awarite, a natural alloy consisting of approximately 75% nickel and 25% iron, with no sulfur content.

Previous exploration activities at the property include an extensive helicopter survey and geochemical sampling program conducted by the property's previous owner in 2011.

Recharge Resources conducted additional geochemical sampling in 2021, increasing the project's potential.