First Mining Gold Corp (TSE:FF) (OTCQX:FFMGF) (FRA:FMG) said it has entered into an earn-in agreement with Whitefish Exploration Inc.
Under the deal, First Mining said it may earn, over the course of two stages and over a period of five years, up to a 100% interest in Whitefish's Swain Lake property near the Springpole project in Ontario.
First Mining said it will have the option to earn an initial 70% interest in the property by making cash payments totaling $200,000, and share payments totaling $425,000 to Whitefish, and by incurring at least $500,000 worth of expenditures during the first three years of the earn-in term.
READ: First Mining Gold strikes deal with Exiro Minerals to option land package near Springpole Gold Project in Ontario
Upon completing the first stage of the earn-in, First Mining said it will hold, through its wholly-owned subsidiary Gold Canyon Resources Inc, a 70% interest in the property and will have an additional period of two years to acquire the remaining 30% of the property by paying $1 million to Whitefish and issuing it with $1 million worth of First Mining shares.
In the event the second stage of the earn-in is not completed, Whitefish and Gold Canyon will enter into a joint-venture agreement with respect to the Swain Lake Property, the company said,
Swain Lake is comprised of 82 single cell mining claims covering 1,640 hectares. It is located about 2 kilometers (km) from First Mining's western-most property boundary at its Springpole Gold Project and immediately to the east of the Swain Post property
First Mining has signed a three-year option agreement with Exiro Minerals Corp, the owner of the Swain Post property, under which First Mining may acquire a 100% interest in the Swain Post property by making future cash and share payments to Exiro, and completing all assessment work requirements during the term of the option.
"We are very excited to continue consolidating highly prospective mineral tenure near our Springpole Gold Project," said Dan Wilton, CEO of First Mining, in a statement.
"Over the last couple of months, First Mining has added a further 6,200 hectares to our land package in the Birch-Uchi greenstone belt and we look forward to surfacing value in this under-explored region. The Swain Lake Property is host to encouraging, high-grade gold occurrences identified during earlier work programs, and is adjacent to the past-producing, high-grade Sol D'or mine.
"We will be incorporating this property our regional and targeted exploration programs in the next twelve months," he added.
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