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Be the first with the news that moves the market- Empire Metals (TSXV:EP) is set to acquire an 80 per cent stake in the Bikini Gold Project, located in the Yukon Territory’s prolific Mayo Mining District
- As consideration for the acquisition, the company will pay C$300,000 in cash, issue 3.5 million common shares and fund $1.5 million in exploration expenses
- The project will be subject to a net smelter return royalty, granted to the vendors, of three per cent
- Previous work at the project intersected quartz vein mineralisation, but not exploration activities have been undertaken since the mid-1990s
- Empire Metals (EP) is steady and is trading at 7.5 cents per share
Empire Metals (TSXV:EP) is set to acquire an 80 per cent stake in the Bikini Gold Project, located in the Yukon Territory.
As consideration for the acquisition, the company will pay C$300,000 in cash to the vendors and issue 3.5 million common shares over a period of five years in five tranches.
1.5 million of these shares will be issued upon the Toronto Stock Exchange’s acceptance of the deal, with the remaining amount issued in four 500,000 share tranches before June 20 of each year until 2024.
Empire Metals will also need to fund $1.5 million in exploration and development expenses over a five year period.
In addition, the Bikini Gold Project will be subject to a net smelter return royalty of three per cent, which will be granted to the vendors. However, a third of the royalty – or one per cent – may be acquired for a fee of $1 million.
While the gold-rich Mayo District has been a region of significant exploration for many years, the Bikini Gold Project has not seen any activity since the mid-1990s.
According to historical data, the property was last worked in 1995 and 1996 by a Canadian junior exploration company. The program included surface mapping, sampling and a three-hole drill program totalling 1,253 metres, focusing on the northeast edge of a Cretaceous felsic intrusion.
This is reported to be the only drill program to have taken place over several highly prospective and anomalous intrusions. These intrusions are located at the centre of a 20 kilometre wide circular group of nine exposed intrusions, which are between one and 10 kilometres long.
Empire Metals (EP) is steady and is trading at 7.5 cents per share at 2:26pm EDT.
