01:53 PM EDT, 05/28/2024 (MT Newswires) -- Portofino Resources ( PFFOF ) said Tuesday it signed a mineral claims option agreement with Delta Resources ( DTARF ) .

Portofino granted Delta the exclusive right to buy a 100% interest in its Gold Creek property near Thunder Bay in northwest Ontario.

The terms of the agreement include $300,000 paid in cash and about 2 million shares of Delta. Portofino will retain a 2% net smelter return royalty on the property.

Delta will have the option to buy back a 1% NSR at any time for $1 million and will have a right of first refusal on the second 1% NSR, to a maximum of $4 million.

Additionally, Portofino has signed a claim purchase agreement with a private vendor that covers about 700 acres and is contiguous and to the north of the Gold Creek property.

To acquire 100%, Portofino will pay $2,200 in cash and 250,000 shares of Portofino upon Exchange approval. The vendors will retain a 1.25% NSR and Portofino has the right to buy back .75% for $200,000.

Portofino shares last traded Monday, closing at $0.035 on the TSX Venture Exchange.