Margaux Resources (TSXV: MRL) executed this week the definitive agreement with Wildsky Resources (TSXV: WSK) that was first announced two months ago and the refers to an option to acquire a 100% interest in the Cassiar gold project in northern British Columbia.
The property, including all existing infrastructure such as a 270 tonne per day flotation and gravity mill and a tailings storage facility, is held by Cassiar Gold, a wholly-owned subsidiary of Wildsky. Under the terms of the definitive agreement, Margaux has to acquire all of the common shares in the capital of Cassiar Gold and issue 58,200,000 common shares in the capital of Margaux at a deemed price of $0.08 per share, for aggregate consideration of $4,656,000.
Margaux has to invest at least $400,000 on the planning, development and execution of the Cassiar 2019 work program.
Margaux must also undertake exploration on Cassiar’s property.
“The Sheep Creek and Cassiar projects are two of the three regions identified in a recently published GeoScience BC report as having good upside potential for orogenic gold mineralization in BC,” Tyler Rice, President and CEO of the buying company, said in a media statement. “Margaux looks forward to applying our learning and geological insights from our recent work at Sheep Creek to the Cassiar project.”
Rice explained that the Cassiar gold project is an advanced-stage orogenic gold system with a historical Inferred Resource of 1.04 million ounces gold (32.4 million tonnes at an average grade of 1.0 g/t gold using a cut-off grade of 0.5 g/t gold).
The CEO also said that these data were presented in 2009 and thus his firm is not treating the historical estimate as current mineral resources or mineral reserves. “As Margaux works to complete its evaluation of the property it anticipates identifying and completing a drill program in 2019, completing further QA/QC work and engaging an independent reserves evaluator to complete an updated 43-101 report.”
The post Margaux executes definitive agreement to acquire Cassiar gold project in BC appeared first on MINING.com.