HighGold consolidates Munro-Croesus east of Timmins and secures $12million from major miner
HighGold Mining Inc. announces that, through its wholly-owned subsidiary, it has entered into three separate agreements with arm’s length vendors to acquire an aggregate of 38 patented mining claims, three single cell mining claims, one boundary cell mining claim and four mining leases covering a total area of approximately 8 km2 (792 ha) in the Timmins region.
The company has also announced that, in connection with the company's recently announced C$12 million bought deal private placement, an existing strategic shareholder of the Company has elected to exercise its participation right under an investor rights agreement with the company dated September 19, 2019 (the "Participation Right Exercise"). The strategic shareholder is a senior North American gold mining company.
The Property, which surrounds and immediately adjoins HighGold’s existing Munro-Croesus Gold property, brings the total consolidated land position to approximately 12 km2 (1,181 ha).
“Munro-Croesus is renowned for its high-grade historic gold mineralization and is the crown jewel of HighGold’s Timmins area properties,” commented President and CEO Darwin Green. “With these acquisitions, the Company has now consolidated a sizable land package of highly prospective ground along the Pipestone Break within the Timmins Gold Camp.”
Due to fragmented land ownership dating back to the early to mid-1900s when the Croesus Mine was in production, most of the Property has never been explored by modern or systematic exploration methods. The Company’s Ontario exploration team has already commenced preliminary surface exploration on the consolidated land package with the plan to resume the 2020 drill program in the fall.
In consideration of the Acquisition and subject to TSX Venture Exchange (the “TSXV”) approval, the Company has agreed to issue an aggregate of 200,000 common shares and to make cash payments in the aggregate amount of CAD $475,000 to the Vendors. Pursuant to the terms of the agreements, the Property is subject to certain net smelter returns royalties, a portion of which royalties may be purchased back by the Company, and an offtake right on base metal concentrates from a portion of the Property.
About HighGold
HighGold is a mineral exploration company focused on high-grade gold projects located in North America. HighGold’s flagship asset is the high-grade Johnson Tract Gold (Zn-Cu) Project located in accessible Southcentral Alaska, USA that contains an Indicated Resource of 2.14 Mt grading 10.93 g/t gold equivalent (AuEq) for 750,000 ounces AuEq and an additional Inferred Resource of 0.58 Mt grading 7.16 g/t gold equivalent for 134,000 ounces AuEq (see Technical Report titled “Initial Mineral Resource Estimate for the Johnson Tract Project, Alaska” dated June 15, 2020) along with excellent exploration potential indicated by several other prospects over a 12-kilometer strike length. The Company also controls a portfolio of quality gold projects in the greater Timmins gold camp, Ontario, Canada that includes the Munro-Croesus Gold property, which is renowned for its high-grade mineralization, and the large Golden Mile and Golden Perimeter properties. HighGold’s experienced Board and senior management team, are committed to creating shareholder value through the discovery process, careful allocation of capital, and environmentally/socially responsible mineral exploration.
Tags: Northern Ontario / Exploration / Gold / All Articles