- Affinity Metals (TSXV:AFF) has entered an agreement to acquire up to 90 per cent of the West Timmins Gold property in Ontario
- The property spans 20 mineral tenures over 429 hectares across the Timmins Gold Camp
- The initial tranche requires a C$15,000 cash payment, an issuance of 300,000 Affinity shares and drilling work totalling 1200 metres, to acquire a 70 per cent interest
- To acquire a further 80 to 90 per cent stake in the property, the company must complete further drill work, cash payments and share issuances
- Affinity Metals (AFF) is up 25 per cent and is trading at $0.25 per share, with a market cap of $8.5 million
Affinity Metals (TSXV:AFF) has entered an agreement to acquire up to 90 per cent of the West Timmins Gold property in Ontario.
The company entered into an agreement with a third party to acquire the property’s 20 mineral tenures, which span 429 hectares.
To validate the staged option agreement Affinity must drill 500 metres of exploration surrounding a specific target at the site.
Once the initial 500 metres of drilling is done, Affinity can either abandon the option or continue and earn a 70 per cent interest by paying C$15,000, issuing 300,000 Affinity shares and drilling an additional 700 metres on the site.
There are further options and terms for Affinity to acquire a further 80 or even 90 per cent stake of the property through the provision of substantially more drilling work, cash payments and share issues.
Robert Edwards, the CEO of Affinity, said he was excited add West Timmins to the company’s portfolio.
“The project is optimally located in the very prolific Timmons township area, immediately adjacent to Melkior’s Carscallen, which has attracted significant market attention the past few weeks with their recent gold discovery.
“We believe that the West Timmons Gold Property has significant and similar discovery potential and we plan to begin drilling the first target in the very near future,” he said.
West Timmins directly adjoins Melkior’s Carscallen project to the west, and both properties sit on the northern flank of the Destor Porcupine Fault Zone.
Melkior recently made a significant find at Carscallen, which led to Kirkland Lake Gold recently acquiring a 10 per cent interest.
Affinity Metals (AFF) is up 25 per cent and is trading at $0.25 per share at 10:00 pm EDT.