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Rio takes Triumph option

Triumph Gold (TSXV: TIG) says Rio Tinto Exploration Canada has entered an option agreement to acquire its Andalusite Peak property in British Columbia, freeing up the junior the focus on its flagship Freegold Mountain project in the Yukon.
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A sample from Triumph Gold’s Andalusite Peak project in British Columbia

Staff reporter

Triumph said RTEC would pay C$3 million (US$2.3 million) over a five-year period and reserve a 1% NSR for Triumph capped at $50 million (US$37.8 million).
 
The junior said it had staked Andalusite Peak in January 2017 to cover an alteration "blow out", near the centre of a 27km-long corridor of intermediate to advanced argillic alteration.
 
It has since reported grab samples of up to 67% copper, 500g/t silver and 2.8g/t gold from the Tennessee trend, one of two mineralised trends it had identified on the property.
 
"The agreement benefits Triumph Gold in the near term with cash payments and provides exposure to the upside of a potential future mine development through a 1% net smelter returns royalty," president and CEO Paul Reynolds said.
 
Triumph last month closed the final tranche of a $5.1 million (US$3.8 million) placement at 49c per flow-through unit and 35c per unit, for general working capital and exploration at Freegold Mountain, where it's planning "to drill the deepest hole into the Yukon's richest porphyry to date".
 
Triumph shares had touched C80c last September but were as low as 30.5c in May.
 
They gained 11.2% yesterday to close at 49.5c, to capitalise Triumph at $48 million (US$36.2 million).