Klondike Gold Corp. (TSX-V:KG) has announced that it has entered into a property acquisition agreement to purchase a 100% interest in C2C Gold Corp's Quartz and Sulphur properties comprised of 689 mining claims covering 143 square kilometers in Yukon’s Dawson mining district.
Upon completion of the transaction, the gold exploration company said it will have expanded its Klondike District Property land position covering the prospective Klondike goldfields with direct ownership of a total of 3,913 quartz claims in one contiguous district-encompassing property covering a 727 square kilometer area, expanding the property area by 27%.
"We welcome the opportunity to consolidate our land position covering the prospective southeast side of the Klondike District into one contiguous district-spanning claim group,” Klondike Gold CEO Peter Tallman said in a statement.
READ: Klondike Gold eyes doubling gold resource and identifying new discoveries at its Klondike District Gold Project in 2023
In return for C2C's Quartz and Sulphur properties, plus 12 years of exploration data, Klondike said it will:
- Issue 1 million of its common shares to C2C; and
- Grant C2C a 1% net smelter returns royalty (NSR Royalty) in respect of the Quartz and Sulphur properties, of which Klondike Gold may purchase one-half of the NSR Royalty (being a 0.5% NSR Royalty) from C2C for $500,000 cash at any time. The Quartz and Sulphur properties each have underlying 2% NSR Royalty obligations where Klondike Gold has the right to purchase one-half (or 1%) of each NSR Royalty for $1,000,000 cash and has a right of first refusal to purchase the remaining 1%.
“The claim package will allow systematic exploration, evaluation and ranking of gold targets across the district with geological understanding of variations and potential zonation,” Tallman added. “Klondike Gold believes there is significant potential for multiple discoveries and this consolidation will allow the greatest opportunity for testing the best possible targets.”
The company said the property acquisition agreement is subject to final approval of the TSX Venture Exchange.
Klondike Gold also announced it will be participating in the Prospectors & Developers Association of Canada (PDAC) miing convention in Toronto from March 5 to 8. The company will have three research poster displays at the PDAC-SEG Student Minerals Colloquium: 3 Research Poster Displays.
Klondike Gold is a Canadian exploration company focused on the exploration and development of its Yukon gold projects.
Contact the author at stephen.gunnion@proactiveinvestors.com