Orecap signs option deal for McGarry gold project with Mistango

Orecap Invest Corp. (TSXV: OCI) announced November 18 it executed a binding letter of intent to option its McGarry gold project to Mistango River Resources Inc. (CSE: MIS), which is rebranding as Stardust Metal Corp.

Under the agreement, Stardust can earn up to a 75% interest in the McGarry project through a two-stage option structure. The first option allows Stardust to earn a 50% interest by completing $13 million in commitments over four years, including $500,000 in cash payments and $12.5 million in work obligations.

The work program will focus on updating mineral resource estimates, defining potential gold resources within historic tailings, and drilling campaigns. Upon completing the first option, a 50-50 joint venture would be formed with Stardust as operator.

The second option permits Stardust to acquire an additional 25% interest within two years of earning the initial 50% for a $50 million cash payment to Orecap. This would give Stardust a 75% total interest while Orecap retains 25%.

"If the second option is exercised at $50 million, it would be an absolutely fantastic outcome for Orecap shareholders," said Stephen Stewart, Orecap's chairman.

The McGarry project is located in Ontario's Kirkland Lake/Larder Lake Gold District. Historic tailings from the Kerr Addison operation, estimated to cover 73 hectares, are situated within the McGarry property boundaries.

Orecap holds approximately 13.9% of Mistango shares, making it a major shareholder. The transaction will be treated as a related party transaction under securities regulations, as certain directors and officers of Orecap are also directors, officers or shareholders of Mistango.

The agreement requires acceptance by the TSX Venture Exchange and may require disinterested shareholder approval, with a special meeting expected in early 2026 if required.

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