WestKam Gold Corp. has stated that it has entered into a binding contract to buy five mining claims in northwest British Columbia known as the McConnell property from an arm’s length company, GGL Resources Corp.
Image Credit: igormakarov/Shutterstock.com
By providing the vendor the number of common shares necessary to provide the vendor a 19.99% stake in the company as of the closing date after these shares have been issued, the company will get a 100% interest in the McConnell property.
As required by relevant securities regulations, the shares will be held for a statutory hold period of four months and one day from the closing date after they are issued. A 2% net smelter return royalty on the McConnell property will also be retained by the vendor.
Closing will take place upon the fulfillment of all prerequisite requirements, which includes, among other things, receiving TSX Venture Exchange approval.
The McConnell property spans 8,700 hectares in British Columbia's Golden Horseshoe. The property is near a hydro grid and 22 km southeast of the past-producing Kemess Copper-Gold Mine. It is accessible by road. With current exploration and drilling licenses, over $4 million in earlier exploratory work has been done on the land.
Potential copper/gold porphyry systems, as well as shear-hosted gold mineralization, have been discovered. The gold and copper zones have been verified as high-priority targets for additional exploration using satellite remote sensing structural interpretation and data synthesis.
Using the same criterion, an additional five high priority and 11 secondary-priority categories were found. Future investigation locations are scattered around the property and correlate with important geological faults.
The completion of this acquisition will provide WestKam with a major exploration project that checks all the boxes: critical metal and gold targets, road accessible, near other mines in a world class exploration district and acquired for what we believe is a fair cost.
Peter Laipnieks, Chief Executive Officer, WestKam Gold Corp.
Source: https://westkamgoldcorp.com/