HighGold Mining Inc (TSX-V:HIGH, OTCQX:HGGOF) said it has executed an agreement to purchase the remaining 50% interest in its Yukon mineral properties, bringing its ownership to 100%.
The company said the acquisition includes four separate properties totalling 1,023 claims and 210 square kilometres (km).
According to HighGold, the most advanced of the properties is King Tut, where past exploration work outlined multi-km long gold-in-soil anomalies, including an open-ended 1 km by 1 km gold anomaly associated with the upper carapace of an intrusive body with no prior drilling.
This property is located 10 km south of Snowline Gold’s Selwyn Basin land package and 50 km from their recently “reduced intrusive related gold” discovery.
READ: HighGold Mining drills high-grade gold at its Johnson Tract project in Alaska
HighGold CEO Darwin Green said following the recent and very significant new gold discoveries in Yukon’s Selwyn Basin, it is time for HighGold to pull its portfolio of Yukon gold properties off the back burner.
“In our opinion, the King Tut property represents one of the best undrilled intrusive-related gold-in-soil anomalies not already controlled by Snowline Gold in this emerging new district,” he said.
“Consolidation of ownership was the first step for us as we look to create shareholder value for these Yukon assets.”
Agreement terms
Through its wholly-owned subsidiary, HighGold has entered into an agreement of purchase and sale with Carlin Gold Corp to acquire the property for a cash payment of C$75,000 and an issue of 200,000 shares.
The acquired property is subject to a 0.5% net smelter returns royalty in favour of Carlin Gold, which can be bought back by HighGold.
Further, HighGold has entered into an agreement of purchase and sale with Strategic Metals (TSX-V:SMD) Inc for the purchase of the Harlow property that ties onto the King Tut property.
HighGold said it had agreed to make a cash payment of C$20,000 to Strategic, issue 20,000 common shares, and grant a 2.5% net smelter returns royalty on the Harlow property, of which 0.5% may be bought back by the company for $750,000.
Stifel expects re-rating of HighGold shares
Meanwhile, analysts at Stifel GMP expect HighGold’s stock to re-rate as the company continues to conduct exploration at its flagship Johnson Tract property in Alaska, following the release of “excellent” initial 2022 drill results from the Difficult Creek prospect on the property.
In a note, the analysts maintained a ‘Buy’ rating and price target of C$2.75 on the company's shares. HighGold’s Toronto-listed stock is currently trading at C$0.90.
“The high grade, bulk tonnage JT Main deposit is ideally situated for low-cost underground extraction and remains open for significant expansion beyond the current 800koz AuEq resource in several directions,” they said.
“We think the company will present an attractive takeout target for a major producer with an ideal combination of deposit scale and regional exploration runway.”
The analysts further noted that the company’s extensive Timmins properties also offered free optionality and is currently not reflected in HighGold’s stock price.
HighGold is a mineral exploration company focused on high-grade gold projects in North America.
Contact the author at emily.jarvie@proactiveinvestors.com
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