Sanatana Resources Inc (CVE:STA) said it has inked a deal to acquire an interest in a new copper-gold project in British Columbia’s famed Golden Triangle region.
The company has signed a letter of intent with ArcWest Exploration Inc (CVE:AWX) to earn-in on the Oweegee Dome porphyry project in the region.
Oweegee Dome is located around 45 kilometres east of Seabridge Gold’s KSM-Iron Cap porphyry copper-gold project.
READ: Sanatana Resources says G4 Drilling completes four holes on its Gold Rush project, all of which intersected quartz veins, alteration and sulphides
Under the terms of the deal, Sanatana will be able to earn up to 60% interest in Oweegee Dome if it spends C$6.6 million in exploration expenditures by December 2024. The company will make cash and share payments to ArcWest, including C$500,000 in cash and two million in shares over the same three-plus-year period.
Payments can be made in cash, shares or a combination of 50% cash and 50% shares at ArcWest's election. Sanatana will also have the ability to earn an additional 20% interest, for an aggregate 80% interest, or form a joint venture.
Sanatana’s CEO Peter Miles said the firm was “delighted” to enter into the agreement with ArcWest, calling Oweegee Dome one of the largest underexplored projects of its kind in the Golden Triangle.
"This proposed transaction will leverage our experience in BC's Golden Triangle particularly because our chairman, Ian Smith, led the team at bcMetals Corp that engineered the Red Chris porphyry Cu-Au deposit for development, prior to being acquired by Imperial Metals Corp,” Miles told shareholders in a statement.
The CEO added that 70% of Red Chris was later purchased from Imperial by Newcrest Mining for US$804 million.
Vancouver-based Sanatana is focused on high-impact properties in Canada and the Western Pacific.
Contact Angela at angela@proactiveinvestors.com
Follow her on Twitter @AHarmantas