TerraX Minerals Inc. June 17 reported the completion of an option to Osisko Gold Royalties Ltd. to purchase an additional 1 percent net smelter return royalty on the Yellowknife City Gold Project in the Northwest Territories, including a surrounding area of interest.

To obtain this option, Osisko has paid TerraX C$1 million in cash.

The option entitles Osisko to purchase the 1 percent NSR by paying an additional C$2 million within three months following commencement of production.

This NSR is in addition to Osisko's existing option to acquire a 2 percent NSR on Yellowknife City Gold, including a surrounding area of interest.

In conjunction with the acquisition of the option, Osisko also completed a private placement of 6.25 million flow-through shares at C40 cents per share for gross proceeds of C$2.5 million.

Osisko now owns 17.21 percent of the common shares of TerraX along with warrants exercisable to purchase an additional 2,243,463 shares.

On June 19, TerraX raised an additional C$526,145 by issuing another 1,058,100 flow-through shares at C45 cents per share and 125,000 flow-through shares at C40 cents per share.

The proceeds of these private placements - along with the C$2 million flow-through private placement completed by TerraX earlier this month - will be used at Yellowknife City Gold.

Technical staff from Osisko is currently in the field assisting TerraX personnel in mapping and prioritizing drill targets for drilling scheduled to start up in mid-July.

TerraX Joe Campbell said, "TerraX has always been committed to putting our dollars into the ground where they have the best chance of returning value to our investors.

Now, in the midst of historically difficult capital markets for junior mining companies, TerraX has more exploration funding available than at any time in the history of the company.

This funding, along with our technical partnership with Osisko, gives TerraX the financial means to effectively explore the world-class potential of the Yellowknife City Gold project."

Author Bio

Shane Lasley, Publisher

Over his more than 16 years of covering mining and mineral exploration, Shane has become renowned for his ability to report on the sector in a way that is technically sound enough to inform industry insiders while being easy to understand by a wider audience.

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