Ximen Mining Corp (CVE:XIM) (FRA:1XMA) (OTCQB:XXMMF) said it has acquired several mineral claims in the Wild Horse Creek area, 15 kilometers (km) northeast of Cranbrook in the Fort Steele Mining Division in southern British Columbia.
The Vancouver-based junior precious metals explorer said it will settle the claim acquisitions with its own stock.
The Wild Horse Creek property, which adjoins Ximen's Hughes Range claims, includes a total of 139 mineral claims covering 12,767 hectares near historic Fort Steele. The land package is covered by two separate purchase agreements under which Ximen is required to issue 3,455,000 shares split among the vendors. The vendors have entered into voting trust agreements that cover the shares being issued.
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In the first purchase agreement, a total of 43 mineral claims covering 3,221 hectares were bought for an aggregate of 1.355 million Ximen shares. The company acquired a 100% interest in the claims, subject to a 1% net smelter return royalty.
In the second purchase agreement, a total of 96 mineral claims covering 9,546 hectares were bought for an aggregate of 2.1 million shares. Ximen acquired a 100% interest in the claims, subject to a 1% net smelter return royalty with a $1 million buyout. The second land package comes with current exploration permits approved for drilling. The deal also includes portable assessment credits worth $189,607, which will be transferred to Ximen.
The Wild Horse Creek property lies within the Kimberley gold trend, a zone that extends southwestward from the Rocky Mountains into the western part of the Purcell Mountains.
In 1864 gold was discovered in Wild Horse Creek and the 720 km long trail known as the Dewdney Trail was started to connect Hope with the gold mining community known as Fisherville on Wild Horse Creek. More than 10 million ounces of gold is estimated to have been recovered from the gold-bearing streams in the East Kootenay area and the locations of more than 50 gold showings have been recorded.
Ximen said one of the most interesting prospects is the Lone 4 claim, where results of a 2016 diamond drill hole suggest that a source of the rich surficial gold placer deposits could be located.
Contact the author at stephen.gunnion@proactiveinvestors.com