Tarku Resources Ltd. announces the execution of a letter of agreement to merge Eureka Exploration Inc., a private issuer, with Tarku.
Eureka's assets encompass 5 well-positioned exploration properties near Chibougamau and Matagami in Northern Abitibi, Québec and aggregates 274 claims or 15,186 ha along regional gold-bearing trends. This merger will greatly increase Tarku's land position in Québec and expose the Company to both the significant assets and strong technical team of Eureka.
Summary of the transaction
Under the terms of the Agreement Tarku will acquire all of the common shares and common share purchase warrants of Eureka Shares issued and outstanding in consideration for the issuance of 10,000,000 common shares of Tarku (the "Tarku Shares") and 900,000 common share purchase warrants of Tarku (the "Tarku Warrants"), each Tarku Warrant entitling the holder to subscribe for one (1) Tarku Share at a price of $0.10 until June 29, 2018.
In connection with the closing of the acquisition, the following changes will be made on the board of directors:
- two (2) directors of Tarku will step down and allow Julien Davy and Benoit Lafrance to join the Board of Directors;
- Julien Davy will be appointed as President of Tarku; and
- Benoit Lafrance will be appointed as Exploration Manager of Tarku.
Both Sylvain Laberge and Jeff Sheppard will retain their positions as the CEO and CFO, respectively, as well as their director positions.
Eureka owns a 100% interest in the following properties:
Based on the innovative approach of using a different geological model than the typical "Chibougamau Cu-Au mineralization type", Eureka took a wide land position for orogenic gold potential along a regional fault in the northern part of the Chibougamau district.
- Richardson - 42 mining claims covering 2,319 ha, located 20 km NNE of Chibougamau:
The Richardson property is located along the regional Barlow fault. Despite the absence of documented gold occurrences at the time of staking in early 2016, the exploration model used by Eureka for targeting orogenic gold has been proven successful with the discovery of a mineralized felsic volcaniclastic rock containing 1.7 g/t Au (associated with disseminated sulphides) during preliminary fieldwork conducted in 2016. In addition to its gold potential, the Richardson project also includes a mafic-ultramafic intrusive complex representing a favourable setting for Ni-Cu-PGE (platinum group elements) mineralization as well as a historical intercept of 2.75% Zn over 0.6m (historical drill hole), highlighting the potential for Zn-Cu-Ag-Au volcanogenic massive sulphides (VMS) mineralization.
- Bullion - 26 mining claims covering 1,435 ha located 25 km NNE of Chibougamau:
The Bullion property is located along the regional Barlow fault. Historical data on the Bullion project reveals gold results ranging from trace quantities up to 2 g/t Au over 2 meters (associated with disseminated sulphides) in 1984 drilling . This mineralization, along with the new Eureka gold showing on the Richardson project, enhances the gold potential along the new regional trend.
With the adjoining Bullion and Richardson projects, Eureka Exploration holds 16km of 100%-owned land position on an underexplored, prospective gold-bearing regional structure that has seen only 8 drill holes completed in the 1980's. This faulted contact on the northern edge of the most northerly sedimentary basin of the Abitibi shows similarities to the Detour Lake Mine geological context. Tarku/Eureka management caution that mineralization within the Detour Lake mine may not be indicative of the mineralization that may be identified on its Chibougamau properties, which remain a conceptual exploration targeting model.
Eureka also used a different geological model than the typically applied VMS-type model used by the other companies to identify base metals in the Matagami district. Following this approach, Eureka took a significant land position which targets gold mineralization along regional fault zones east of Matagami district.
- Apollo - 96 mining claims covering 5,320 ha located 50 km east from Matagami:
The Apollo project is located along the regional Rivière Waswanipi ductile shear zone that affects alkaline lavas, polygenic conglomerates (Timiskaming-type) and porphyritic intrusions anomalous in gold. This geological context shows potential for "Orogenic Gold associated with Alkaline Rocks and Porphyritic Intrusions" mineralization type. This faulted contact on the northern edge of the Abitibi is interpreted as being similar to the Detour Lake Mine geological context. Tarku/Eureka management caution that mineralization within the Detour Lake mine may not be indicative of the mineralization that may be identified on its Chibougamau properties, which remain a conceptual exploration targeting model.
- Admiral - 24 mining claims covering 1,334 ha, located 25 km east from Matagami:
The Admiral projects include two regional shear zones and shows potential for mesothermal orogenic gold as highlighted by the Lac Olga Ouest showing located immediately east of the claims (historical geological sampling recovered samples ranging from trace quantities to 5.9 g/t Au in a quartz-carbonate-pyrite vein; grab sample).
- Atlas - 86 claims covering 4,778 ha located 50 km east from Matagami:
The Atlas project contains aluminous-type alteration and volcanic sequence with facies and geochemical affinity similar to the Bousquet Formation of the southern Abitibi. This distinctive geological environment highlights the potential for the presence of gold-bearing Volcanogenic Massive Sulphides mineralization (Au-Ag-Cu-Zn VMS). Tarku/Eureka management caution that the mineralization within the LaRonde mine may not be indicative of the mineralization that may be identified on its Matagami district properties, which remain a conceptual exploration targeting model.
The completion of the transaction is subject a number of conditions, including, but not limited to, the approval of the TSX Venture Exchange and all other necessary approvals.