District Metals Corp. (TSX-V:DMX) announce that it has completed the acquisition of a 100% interest in the polymetallic Gruvberget property in the prolific Bergslagen district of Sweden from Explora Mineral AB.
Gruvberget spans 5,286 hectares (Ha), has a north and south zone, and lies 35 kilometres to the northwest of the company's Tomtebo property.
District Metals CEO Garrett Ainsworth described the Gruvberget property as an “excellent addition” to the company’s robust portfolio of prospective polymetallic properties in the Bergslagen district.
READ: District Metals to acquire advanced exploration stage asset Gruvberget from Explora Mineral AB
“The North and South zones at the Gruvberget property comprise a one-kilometer-long mineralized trend with significant historic polymetallic drill intercepts that is open in most directions and provides compelling walk-up drill targets,” said Ainsworth. “A detailed heliborne magnetic and electromagnetic survey (SkyTEM 312HP) is planned to commence at the Gruvberget property before the end of the year, which will provide us will important geophysical data to follow up via mapping, prospecting, and geochemical sampling."
To complete the transaction, District Metals issued 1 million shares and paid Explora C$20,000 in cash. It also granted Explora a 2.5% net smelter royalty (NSR) on the Gruvberget property subject to an option to repurchase the entire 2.5% NSR royalty for C$8 million at any time.
To retain the project, District must incur C$500,000 of eligible expenditures on the Gruvberget property within two years of closing.
In keeping with standard securities laws, the closing shares are subject to a four-month hold period from the closing date of the transaction.
District’s advanced exploration stage Tomtebo property comprises 5,144 ha and is situated between the historic Falun Mine and Boliden's Garpenberg Mine in south-central Sweden.
Contact the author Uttara Choudhury at uttara@proactiveinvestors.com
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