- Taku Gold (TAK) has signed three separate option agreements to wholly acquire three new properties in the Central Newfoundland Gold Belt
- The assets include 712 mineral claims known as the Badger property, 354 claims known as the Barrens Lake property and 908 claims known as the Millertown property
- Newfoundland has recently become an area of significant focus when it comes to gold exploration, driven by recent major successes from the likes of New Found Gold
- The company is also looking to raise C$1 million in a private placement to fund exploration work at the three properties
- Taku Gold (TAK) is currently up 20 per cent to $0.12 per share at 12:37pm EST
Taku Gold (TAK) has signed three separate option agreements to wholly acquire three new properties in the Central Newfoundland Gold Belt.
Covering a total of 445 square kilometres, the properties include 712 mineral claims known as the Badger property, 354 claims known as the Barrens Lake property and 908 claims known as the Millertown property.
Under the terms of the deal, Taku may acquire the Badger and Barrens Lake properties by issuing C$250,000 and 2.2 million common shares to the vendors for each property, and by assuming expenses of $1 million over a five-year period.
The vendors will also retain a 2 per cent royalty on the Badger and Barrens Lake properties, half of which may be acquired by Taku for a fee of $2.5 million.
In order to acquire the Millertown property, the company will issue $500,000 in cash and 3 million common shares to the vendors, and will need to incur a further $1 million in property expenses over a five-year period.
Like the vendors of the Badger and Barrens Lake properties, the vendors of the Millertown property will retain a 2 per cent royalty, half of which may be purchased by Taku for $2.5 million.
Janet Lee-Sheriff, Executive Chair of Taku Gold, said the acquisitions afford a significant land position in a highly-regarded jurisdiction.
“The province is highly regarded as a top mineral exploration jurisdiction in Canada, with significant exploration and development underway, a government supportive of mineral exploration and development investment and a regulatory regime which provides reasonable timelines, clarity and certainty in the permitting and assessment process,” she added.
Taku is also looking to raise up to $1 million in a private placement by issuing 10 million units at a price of $0.10 each. The proceeds will be used to fund exploration activities at the three new properties.
Taku Gold (TAK) is currently up 20 per cent to $0.12 per share at 12:37pm EST.
