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Newpath selling Northshore Gold Project near Schreiber to Digital Gold Ecosystem

Jan 27, 2025


Newpath Resources Inc. has announced that Great Eagle Gold Corp. has completed its due diligence on the Northshore Gold Project and will proceed with a definitive agreement to acquire the property. The transaction marks a groundbreaking move to integrate the gold resource into NatGold Digital Ltd.’s digital asset platform through tokenization.

“This is an incredible opportunity to transition this project into the digital asset ecosystem,” said Alexander McAulay, CEO of Newpath. “It breathes new life into the property while allowing Newpath to address its convertible debt over the next 12 months. Newpath now moves forward to focus on evaluating lithium and other mineralization potential with our Alpha/Bravo project.”

Key Transaction Terms

The agreement gives Great Eagle the option to acquire a 100% interest in the Northshore Gold Project’s patented claims. The purchase price of CDN $1,000,000 is structured as follows:

• $10,000: Paid within two business days of the LOI execution for due diligence costs.

• $90,000: To be paid upon execution of the definitive Transaction Agreement.

• $900,000: Payable on or before the first anniversary of the Transaction Agreement.

The purchase price is subject to adjustment if the price of gold increases between the LOI date and the final payment date. However, no downward adjustment will occur if gold prices decrease.

Strategic Impact and Financial Stability

Proceeds from the sale will be used to address Newpath’s convertible debt obligations. With default conditions already met, this allocation will allow the company to renegotiate terms with debt holders, strengthening its financial position. Formal outreach to debt holders is set to begin by mid-February.

Future Opportunities

In the event Great Eagle modifies its plans for the Northshore Project, Newpath will retain a 1.5% Net Smelter Return (NSR) royalty on the property’s patented claims. The Northshore Gold Project, covering 210 hectares in Priske Township, is located 4 kilometers south of Schreiber, Ontario, near Lake Superior’s northern shore.

Newpath’s focus will now shift to advancing its Alpha/Bravo project, where the company is evaluating lithium and other mineralization potential, aligning with the growing demand for critical minerals.

With this transaction, Newpath demonstrates its ability to innovate and adapt, leveraging emerging digital asset technologies while addressing financial challenges and pursuing future exploration opportunities.

By Kevin Vincent, Senior Contributing Editor to Mining Life Online and Mining Life & Exploration News



Tags: Northern Ontario / Deals & Financial / Gold / All Articles