Solstice Gold Corp. (TSX-V:SGC) has provided an update on its royalty and property portfolio located in Ontario and Quebec.
The company said the portfolio was acquired in October last year as part of its strategy of value creation for shareholders, to decrease financial risk and to potentially generate funding for its exploration activities at its core properties.
“Our extensive, cash-generating gold and battery metal portfolio has continued to deliver value to Solstice shareholders as we’ve harvested approximately $2.3 million of cash and share payments since its acquisition and added three new stand-alone exploration stage royalties, bringing our total number of royalties held to 11,” Mike Timmins, Solstice CEO said in a statement.
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“In addition, expected future cash inflows of over $2 million from the portfolio further highlight the upside of this acquisition. The company continues to work on plans to generate additional value by the potential monetization of certain larger asset packages. Finally, we’ve reacquired Pringle South, which expands to our 100% owned Red Lake property and adds 4.6 km of favourable structure to explore,” he added.
The potential undiscounted cash inflows from option payments could result in up to approximately $2.0 million over the next 22 months and may partially offset certain corporate costs over that timeframe, the company said.
In addition, the 13.6 square-kilometre Pringle South property increases its Red Lake Extension (RLX) land position and extends the theatre of its exploration further to the northwest, it added.
Portfolio Highlights
- Solstice has received about $2.3 million in option payments (cash and shares) from the portfolio.
- Two Ontario gold exploration property packages were sold creating two new stand-alone gold royalties.
- One Ontario copper exploration property was optioned to a newly-formed exploration company.
- Four Ontario lithium properties were optioned to an international lithium explorer.
- One option agreement was exercised early, creating one new rare earth (REE) royalty.
Portfolio Asset Summary
- 67 exploration-staged assets located in Ontario and Quebec.
- 39 currently optioned to partners that may generate cash inflows and on exercise, new royalties.
- 17 available properties for purchase or option earn-in partnerships.
- 11 fully-earned stand-alone royalties (9 gold, 1 lithium and 1 REE).
- Asset split of 74% gold and 26% green metals (copper, lithium and REE).
- Pringle South property adds scale and upside to RLX.
The company said the Pringle South property is contiguous to the north and includes the extension of the Red Lake Greenstone Belt volcanics and controlled by a major crustal fault/shear. Regional till sampling by Agnico Eagle Mines Ltd in 2008 identified several gold-in-till anomalies over the property.
Solstice is an exploration company with quality, district-scale gold projects in established mining regions of Canada.
Contact the author at jon.hopkins@proactiveinvestors.com