GoldMining Closes Acquisition of Additional Gold Claims Contiguous with its Yellowknife Gold Project.
15 May 2018 - Canadian miner GoldMining Inc. (TSX Venture: GOLD) (OTCQX: GLDLF) has closed an agreement with an arm's length vendor to indirectly acquire the Narrow Lake property, the company said.
This deal was announced on 26 April.
The property includes the N1 and N2 claims, which cover a total area of 618 hectares and are contiguous with the southern boundary of the company's Nicholas Lake-Ormsby property, one of the four properties that comprise the Yellowknife Gold Project.
With this latest acquisition, the YGP will have an expanded total area of 12,120 hectares upon closing.
The YGP has been the subject of substantial drilling, underground development, metallurgical testwork and historic gold production from the high-grade Discovery Mine, which the company acquired in July 2017.
Under the deal, GoldMining will pay USD 50,000 cash and issue USD 38,000 in common shares of GoldMining on closing and an additional USD 100,000 in cash or GOLD Shares, at the company's discretion, on the first anniversary of the closing date, in consideration for the Property.
The number of GOLD Shares issuable shall be based on the volume-weighted average price of GOLD Shares on the TSX Venture Exchange for the ten trading days immediately prior to the date of such payment.
GoldMining granted the vendor a 1% net smelter royalty with respect to the N1 and N2 claims upon commercial production. The transaction is subject to customary closing conditions, including, among other things, receipt of requisite approvals.
Narrow Lake was part of the Morris Lake Project that was explored by Viking Gold Exploration Inc. from 2009 to 2010.
Exploration programmes included geological mapping, rock and lake sediment geochemistry, geophysics (ground magnetic and electromagnetic surveys) and shallow diamond drilling (2,539 metres in 12 holes), which identified several conductors on strike with the Ormsby gold deposit.
The property has potential for both, bulk mineable gold mineralisation as outlined at the Ormsby deposit, located approximately 300 metres to the northeast, and high-grade gold mineralisation, as mined from underground at the Discovery Mine located 3 kilometres to the northeast.
The Ormsby deposit was the focus of extensive exploration by previous operators, including surface and underground drilling (120,760 metres), underground development (1,579 metres), bulk sampling and metallurgical testwork.
The Discovery Mine was in operation from 1949 to 1968 with estimated production of one m ounces of gold.
Reference to historical production at the Discovery Mine is for informational purposes only and is not indicative of the companyezOEs potential future results at the YGP.
Future exploration programmes would be designed to examine the potential for these styles of mineralization on the YGP and at Narrow Lake.
The company has, through a subsidiary, entered into a debt settlement agreement and will issue 34,188 GOLD Shares in satisfaction of USD 40,000 of debt owed by the subsidiary to an arm's length creditor, at a deemed price of USD 1.17 per GOLD Share.
Such GOLD Shares will be subject to a four month and one day hold period from the date of issuance. The transaction will be completed on or about the date hereof upon receipt of TSX-V approval.
GoldMining is a mineral exploration company focused on the acquisition and development of gold assets in the Americas.
Through its disciplined acquisition strategy, GoldMining now controls a diversified portfolio of resource-stage gold and gold-copper projects in Canada, USA., Brazil, Colombia and Peru.
Additionally, GoldMining owns a 75% interest in the Rea Uranium Project, located in the Western Athabasca Basin of Alberta, Canada.
Target: Narrow Lake property
Deal size in USD: 188,000
Type: Corporate Acquisition
Financing: Cash and Stock
Buyer advisor: , ,
Comment: Terms of the deal were not disclosed
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|Publication:||M & A Navigator|
|Date:||May 15, 2018|
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