GFG strikes deal over Montclerg
PERTH (miningweekly.com) – Minerals explorer GFG Resources has struck a deal with International Explorers and Prospectors Inc. (IEP) to acquire the Montclerg gold project, in Northern Ontario.
The project consists of five patented mining claims and 110 unpatented mining claims that cover 10 km of the highly prospective Pipestone Deformation Zone, which hosts multiple gold deposits and mines in one of the most prolific gold districts in the world.
“The acquisition of the Montclerg gold project is a great opportunity to add a more advanced and drill-ready exploration project that has a robust and underexplored gold system outlined. In addition to the known gold zones, we believe there is significant exploration potential to extend the system and discover additional mineralized zones,” said GFG president and CEO Brian Skanderbeg.
“We look forward to implementing our exploration strategy and advancing the Montclerg gold project alongside our Pen and Dore gold projects located west of Timmins.”
Under the terms of the agreement, GFG has a right to earn full interest in the project in exchange for issuing C1-million of its own shares, along with common shares valued at C$500 000 some 12 months following the close of the transaction.
The company would issue a further C$500 000 in shares on the 24-month anniversary of the transaction.
Furthermore, GFG has committed to spending a minimum of C$1-million on exploration over a 24-month period, at the close of the transaction, and would transfer C$1-million in assessment credits of which, C$500 000 will be transferred to IEP within six months following the closing of the agreement and the remaining C$500 000 will be transferred 18 months following the close of the agreement.
The completion of the acquisition is subject to a number of conditions, including TSX-V approval.
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