WestKam Gold Corp. has released an update on the McConnell Property purchase in British Columbia. The Company continues to move the transaction forward by completing all TSX Venture Exchange criteria and vendor precedent conditions.
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The company previously reported that it has reached a formal deal with an arm’s length entity, GGL Resources Corp., to buy five mineral claims in northwestern British Columbia known as the McConnell property.
The company will acquire a 100% interest in the McConnell property by issuing several common shares to the vendor, resulting in the vendor possessing a 19.99% interest in the company as of the closing date after these shares are issued.
Subject to relevant securities regulations, the shares will be issued subject to a statutory hold period of four months and one day from closing.
In conjunction with and as a requirement of the transaction, the company plans to execute a concurrent private placement. A 2% net smelter return royalty on the McConnell property will also be retained by the seller. Closing will take place when all previous requirements are satisfied, which may include getting permission from the TSX Venture Exchange.
The McConnell property spans 8,700 hectares in British Columbia's Golden Horseshoe area. The road-accessible site is located 22 kilometers southeast of the previously operating Kemess Copper-Gold Mine, adjacent to a hydro grid.
The land has ongoing exploration and drilling permits, and earlier exploratory activity totaled more than $4 million. Potential copper/gold porphyry systems, as well as shear-hosted gold mineralization, have been discovered.
According to structural analysis and data synthesis from satellite remote sensing, the gold and copper zones are highly prioritized for more exploration. By applying the same criterion, five more high-priority and eleven secondary-priority categories have been determined.
Future study locations are spaced out throughout the whole land and aligned with the main geological faults.
Source: https://westkamgoldcorp.com/