Delta Resources Options Delta-2 Project in Quebec to Troilus Mining Corp. - $8.25M and 1% NSR To Be Paid Over 3 Years If Option Fully Exercised

Core Viewpoint - Delta Resources Limited has entered into an agreement with Troilus Mining Corp. for Troilus to acquire a 100% interest in Delta's Delta-2 mineral claims, which is subject to regulatory approvals [1] Group 1: Agreement Details - The Delta-2 property consists of 405 mineral claims covering approximately 21,783 hectares in a well-established mining district known for significant gold and base-metal deposits [2] - Under the Option Agreement, Troilus can earn a 100% interest in the Delta-2 Claims by making total payments of $8.25 million over an option period ending on December 15, 2028 [5][10] - Key payment milestones include an initial payment of C$500,000 in cash and additional staged payments totaling C$7.25 million through December 15, 2028 [9][10] Group 2: Strategic Rationale - The agreement is seen as a strong outcome for Delta shareholders, allowing the company to realize near and medium-term value while retaining long-term upside through a royalty interest [3] - Delta will retain a 1.0% net smelter return (NSR) royalty on the Delta-2 Claims, with 50% of this royalty available for repurchase for CAD$500,000 [6] - Troilus will act as the operator during the Option Period, funding all exploration activities while Delta retains ownership of the claims until the option is fully exercised [6] Group 3: Financial Implications - The transaction is expected to provide Delta with non-dilutive cash and share consideration, strengthening its financial position and allowing management to focus on the Delta-1 Gold Property in Ontario [4] - The initial payment of C$2.5 million in 2026 is anticipated to underpin the business for the next three years, providing meaningful investment capital to advance Delta-1 [5] Group 4: Project Location and Context - The Delta-2 Project is located in Québec's Abitibi Greenstone Belt, an established mining jurisdiction with excellent infrastructure and community support for responsible mineral development [11] - Delta Resources Limited is focused on its Delta-1 project in Ontario, where it has discovered a significant gold deposit, further enhancing its exploration and development prospects [13]