(Vancouver, November 22, 2012) Balmoral Resources Ltd. (“Balmoral” or the “Company”) (TSXV: BAR; OTCQX: BALMF) reported today that the Company has agreed to acquire a 100% interest in the Detour East Property, part of the Company’s Detour Gold Trend Project in Quebec. The Detour East Property, currently under option to the Company, adjoins the holdings of Detour Gold who are nearing completion of what is slated to become Canada’s largest gold mine. The Detour East Property hosts a number of known gold occurrences, including the Lynx and Rambo prospects, and extends for over 20 kilometres along the Sunday Lake deformation zone which hosts the nearby Detour Gold deposit.
Under an agreement between the Company and Radisson Mining Resources Inc. (TSXV:RDS, “Radisson”), and subject to regulatory approval, Balmoral will acquire from Radisson the entirety of Radisson’s retained interest in the Detour East Property by making a cash payment to Radisson of $200,000, issuing in favour of Radisson 300,000 common shares and granting to Radisson a 2% net smelter returns royalty (“NSR”) on the mining claims which comprise the Detour East Property. Balmoral may, at any time, purchase the first half of the NSR royalty for a payment of $1,000,000 and may similarly purchase the second half of the NSR for an additional cash payment of $2,000,000. The shares to be issued will be subject to standard 4 month hold provisions from the date of issue.
“Today’s agreement enables us to further consolidate our holdings along the Detour Gold Trend and acquire a 100% interest in a strategically important and highly prospective property in this emerging gold camp” said Darin Wagner, President and CEO of Balmoral Resources.
Under the terms of an existing option agreement between Balmoral and Radisson, the Company had completed payments and work expenditures required to vest an initial 51% interest in Radisson’s interest in the Detour East Property. The option agreement provided for a second option whereby Balmoral could have earned an additional 9% interest (for an aggregate 60% interest) in the Property by funding $1,500,000 in additional exploration expenditures, prior to formation of a joint venture to further explore and develop the Property. Upon completion of the acquisition announced today Balmoral will hold a 100% interest in 538 claims, which comprise 97% of the Detour East Property, and a 61% joint venture interest in an additional 18 claims (3%). The latter claims are subject to a participatory joint venture between the Company and Encana Ltd., in which the Company is the operator.