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Be the first with the news that moves the market- SKRR Exploration (TSXV:SKRR) has executed an option agreement with Taiga Gold to acquire up to a 75 per cent interest in the Leland Gold Property
- SKRR has an option to acquire an initial 51 per cent interest, subject to certain cash payments and share transfers, followed by a further 24 per cent stake
- The Leland Gold Property will be subject to a two per cent net smelter return royalty to Taiga Gold
- A 2019 geological and geophysical program previously indicated high-grade gold occurrences at the property
- SKRR Exploration (SKRR) is currently up 6.45 per cent and is trading at C$0.33 per share, with a market cap of $5.39 million
SKRR Exploration (TSXV:SKRR) has executed an option agreement with Taiga Gold to acquire up to a 75 per cent interest in the Leland Gold Property.
Located 100 kilometres east of La Ronge in northern Saskatchewan, the Leland Gold Property holds several high-grade gold deposits. These include up to 60 grams per tonne of gold associated with structurally-hosted quartz veins.
A three-phase geological and geophysical program completed in 2019 also indicated gold mineralisation.
The program intersected 5.4 grams per tonne of gold over 0.65 metres from the Irving trench, which sits along the Simon-Irving Trend.
While these results were collected by previous operators and are therefore unconfirmed, SKRR Exploration says they form a solid basis for ongoing activities within the Leland Property area.
As such, planning is currently in progress for the 2020 field season.
Under the terms of the option agreement, SKRR may acquire an initial 51 per cent interest in the property for a total of C$1.5 million in exploration expenses, $500,000 in cash and one million common shares. These must be issued in specific instalments between now and December 31, 2022.
Once this initial phase has been completed, SKRR may acquire a further 24 per cent stake, for a total of 75 per cent, by spending an additional $1.5 million on exploration efforts and issuing 500,000 to Taiga by December 31, 2023.
As part of the deal, SKRR and Taiga will need to negotiate a joint venture agreement within the next 30 days. This will formalise joint efforts in carrying out exploration, evaluation and development requirements at the Leland Property.
The property will also be subject to a two per cent net smelter return royalty for Taiga. However, SKRR has the option to repurchase one per cent of this for a payment of $1 million, leaving Taiga with a one per cent.
SKRR Exploration (SKRR) ) is currently up 6.45 per cent and is trading at C$0.33 per share at 3:03pm EDT.
