- ArcPacific Resources (ACP) has signed an agreement to wholly acquire three patented land parcels directly adjoining its Rickard Gold Mine
- Covering a total of 500 acres, the purchase includes surface and mineral rights, as well as other benefits
- The company will pay a one-time fee of C$400,000 for the acquisition, and a 5 per cent royalty will be granted to a Franco-Nevada Corporation
- In addition to the plant purchase, the company intends to raise up to $1.4 million through a non-brokered private placement
- ArcPacific Resources is currently steady at $0.09 per share
ArcPacific Resources (ACP) has signed an agreement to wholly acquire three patented land parcels directly adjoining its Rickard Gold Mine.
Located 70 kilometres northeast of Timmins, Ontario, the Rickard property is host to several high-priority gold prospects and showings, in addition to the historic mine, and currently has exploration drilling permits in place for targeting the mineralised vein systems.
The land packages, which cover a total of 500 acres, consist of three separate crown patents, each of which includes surface rights and mineral rights, and partially cover the westernmost region of the historic underground workings.
ArcPacific will pay a one-time fee of C$400,000 for the purchase, and will grant a 5 per cent net smelter royalty on the claims to a Franco-Nevada Corporation.
"This acquisition further expands the company's land position which now covers 100 per cent of the historic high-grade gold mine located in Ontario's prolific Abitibi Greenstone Belt," said Adrian Smith, CEO of ArcPacific Resources.
"We can now feel confident that the company controls the most important land positions in the area, as we move closer to the implementation of our planned, fully permitted, near-term drilling program," he added.
In addition to the land purchase, ArcPacific intends to raise up to $1.4 million through a non-brokered private placement.
The company will issue 4.85 million flow-through units at a price of $0.10 for gross proceeds of up to $485,000. These units will consist of one flow-through common share and one-half of a flow-through share purchase warrant.
Each whole warrant will entitle the holder to acquire an additional flow-through share at a price of $0.15 for a period of two years from the date of issuance.
ArcPacific will also issue up to 12.2 million non-flow-through units at a price of 7.5 cents each for a total of $915,000. These units will also be comprised of one non-flow-through common share and one-half of a non-flow-through purchase warrant.
Each whole warrant will be exercisable at a price of $0.10 per share for a period of two years.
ArcPacific Resources is currently steady at $0.09 per share, as of 11:29am EST.