02:04 PM EDT, 08/26/2024 (MT Newswires) -- Delta Resources ( DTARF ) on Monday said it reached an agreement with the original vendors of the Horne and Laurie segments at the Delta-1 property in Thunder Bay, Ontario.

The company said the new agreement will eliminate future cash payments of $350,000 and work commitments of $1 million over the next three years.

Last May, Delta announced an agreement with Sky Gold ( SRKZF ) whereby it would assume Sky Gold's ( SRKZF ) Horne and Laurie properties' agreement with the original vendors. Under the new agreement, Delta will acquire a 100% interest in Horne and Laurie by issuing 2-million shares and 1.5-million 24-month warrants to buy a share for $0.12.

The vendors will still retain a 1.75% Net Smelter Return Royalty (NSR) on the properties, which also includes the October 2019 Delta-1 property option. Delta will have a right to buyback a 0.75% interest until October 2nd, 2026 for $500,000 and the remaining 1% interest thereafter for $4 million.

Under the April 2024 Sky Gold ( SRKZF ) and Delta agreement, Sky also retains a 1% NSR royalty with Delta having the option to buyback a 0.5% NSR at anytime for $1 million.

Together, the properties consist of 113 claim units covering approximately 24 square kilometres. The claims are contiguous with the original Delta-1 property.

Delta shares were last seen down $0.02 to $0.11 on the TSX Venture Exchange.

Price: 0.11, Change: -0.02, Percent Change: -12.50