Scottie Resources Corp. (TSX-V:SCOT) told investors it has boosted the value of its assets in the ' Golden Triangle' of British Columbia, as the firm is to buy back all the outstanding royalties on its wholly-owned Scottie Gold mine project.
The property includes the Blueberry zone and the high-grade, past-producing Scottie gold mine.
"Challenging market conditions in 2022 allowed Scottie Gold to negotiate with the existing royalty holders to buy back royalties on the claims within the Scottie Gold Mine Project at attractive valuations," said the company's CEO Brad Rourke in a statement.
"Unencumbering the Blueberry Zone and Scottie Gold Mine increases the inherent valuation of the assets and provides optionality as we continue to advance this exciting project," he added.
READ: Scottie Resources reports new assays on Blueberry Contact Zone
Scottie paid C$1.6 million to the vendor of the 3% Scottie net smelter return royalty (NSR), which was related to certain located and crown granted claims comprising the Scottie Gold Mine and the Blueberry Zone.
The company is also set to buy 100% of the 1.8% gross smelter return royalty on the Summit Lake property, which hosts the Domino Zone around 2 kilometres (km) due west of the Scottie Gold mine.
In consideration, Scottie said it will issue 2.5 million common shares to the vendor at a deemed price of C$0.19 per share.
Scottie also said that it had now staked a further 6,700 hectares (Ha) of ground adjacent to its Georgia project, encompassing additional known occurrences and connecting existing claims into a single contiguous package.
Scottie said the high-grade gold Georgia project now covers over 16,000 Ha centered on the past-producing Georgia River mine, located on tidewater 16 km south of the town of Stewart, British Columbia.
The Georgia River mine, which last operated in 1939, had a head grade of 22.6 grams per ton (g/t) gold and contains 1.2 km of underground access on three levels.
Contact the author at giles@proactiveinvestors.com