Durango Enters into Option Agreement with Bonterra Resources FOR Trove Windfall Lake Property
DURANGO RESOURCES INC.
Suite 248 – 515 W. Pender Street
Vancouver, BC V6B 6H5
TSX Venture Exchange Trading Symbol:
DGO Frankfurt: 86A1 / OTC Grey: ATOXF
DURANGO ENTERS INTO OPTION AGREEMENT WITH BONTERRA RESOURCES
FOR TROVE WINDFALL LAKE PROPERTY
Vancouver, BC / TheNewswire / March 30, 2017 – BonTerra Resources Inc. (TSX.V -BTR, US:
BONXF, FSE: 9BR1) (“ BonTerra”) and Durango Resources Inc. (TSX.V -DGO, OTC: ATOXF,
FSE:86A1), (“ Durango”) are pleased to announce that they have entered into an option
agreement (the “ Agreement”) under which BonTerra can earn a 100% interest in Durango’s
Trove Windfall Lake Property located in the Windfall -Urban Gold Camp district of northern
Québec (the “Trove Property”).
The Trove Property, surrounded by properties held by Osisko Mining Inc. (TSX: OSK) ( “Osisko”)
and Beaufield Resources Inc. (TSXV: BFD) ( “Beaufield”), is a direct extension of the south west
mineralized trend that BonTerra is currently exploring on its Gladiator Gold Deposit and Coliseum
Gold Property. The BonTerra technical team is experienced and very familiar with the type of
geology hosted by the Trove Property.
Pursuant to the Agreement, BonTerra may earn a 100% interest in the Trove Pro perty from
Durango in exchange for making the following payments and undertaking the following
exploration work on the Trove Property:
• BonTerra must pay Durango CDN$150,000 in cash and issue Durango 1,500,000 BonTerra
common shares within 2 business days of the date the TSX-V approves of the transaction
(the “Closing Date”);
• on or before the first anniversary of the Closing Date, BonTerra must pay Durango a
further CDN$150,000 in cash and issue Durango an additional 1,500,000 common shares;
• on or before the second anniversary of the Closing Date, BonTerra must pay Durango
$200,000 and complete a minimum of CDN$1,000,000 in exploration expenditures, upon
which BonTerra will have exercised its option and full title of the Property will be
transferred from Durango to BonTerra;
• BonTerra will issue an additional 2,000,000 common shares to Durango as a discovery
bonus if, and when, BonTerra produces a technical report compliant with National
Instrument 43-101 showing a minimum 500,000 ounces inferred resource of gold; and
• Durango will retain a 2% net smelter return royalty in respect of the Trove Property.
BonTerra may purchase 50% of this royalty at any time for $1,000,000.
Marcy Kiesman, CEO of Durango, stated “The next exploration stage of the Trove Property
requires immediate expenditures for drilling, which Durango’s management is unwilling to
finance at current share prices due to the dilution which would result for our shareholders.
Entering into this transaction with BonTerra provides Durango with cash flow and allows Durango
to share in BonTerra’s potential success in working the Trove Property as a shareholder of
BonTerra. BonTerra brings a strong management team and a talented exploration team for future
exploration on the Trove, having made a signi ficant gold discovery in the Windfall Lake area on
the eastern section, making this partnership an exciting opportunity for Durango. Durango
recently acquired additional strategically located ground in the Windfall Lake area adjacent to
Osisko and within a few kilometres of the Trove Property boundary, and plans to advance this
newly-acquired property in the same manner as the Trove Property was advanced. If Bonterra
has success exploring the Trove Property, Durango may be better positioned finance large
exploration drilling programs on its other projects. We are very excited about this transaction and
the year ahead.”
The Agreement is subject to TSX Venture Exchange approval and will be filed on SEDAR under the
profiles of each of Durango and BonTerra at www.sedar.com.
About Durango
Durango is a natural resources company engaged in the acquisition and exploration of mineral
properties. The Company has a 100% interest in the Mayner’s Fortune and Smith Island limestone
properties in northwest British Columbia, the Decouverté and Trove gold properties in the Abitibi
Region of Quebec, and certain lithium properties near the Whabouchi mine, the Buckshot
graphite property near the Miller Mine in Qu ébec, the Dianna Lake silver project in northern
Saskatchewan, and the Whitney Northwest property near the Lake Shore Gold and Goldcorp joint
venture in Ontario.
For further information on Durango, please refer to its SEDAR profile at www.sedar.com.
Marcy Kiesman, Chief Executive Officer
Telephone: 604.428.2900 or 604.339.2243
Facsimile: 888.266.3983
Email: [email protected]
Website: www.durangoresourcesinc.com
Forward-Looking Statements
This document may contain or refer to forward -looking information based on current
expectations, including, but not limited to the acquisition of additional ground, the option of the
Trove Property or any other properties held by Durango, the entering into of any transaction with
any third parties, exploration results on the Trove Property or the New Windfall Property and the
impact on the Company of these events. Forward -looking information is subject to significant
risks and uncertainties, as actual results may differ materially from forecasted results. Forward -
looking information is provided as of the date hereof and we assume no responsibility to update
or revise them to reflect new events or circumstances. For a detailed list of risks and uncertainties
relating to Durango, please refer to the Company's prospectus filed on its SEDAR profile at
www.sedar.com.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in
the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of
this release.