Fin Resources (ASX:FIN) has executed a binding sale and purchase agreement to acquire the Cabin Lake Gold Project in Canada.
Cabin Lake delivers a fully permitted, drill-ready gold asset with immediate near-surface exploration potential.
Fin, which has a market capitalisation of $6.25 million, will pay $200,000 cash to the vendor and issue 30 million shares, subject to shareholder approval. A $100,000 exclusivity fee was also paid on signing the deal.
As part of the deal, Fin will pay up to $450,000 in deferred consideration which will be satisfied through the issue of performance rights linked to key exploration and development milestones.
Peak Asset Management and Max Capital will act as corporate advisors to the company for the acquisition.
Fin’s share price had increased 33.33% to $0.012 following the release of this announcement this morning (29 October).
Director Jason Bontempo says Cabin Lake offers the company an “exciting and rare” opportunity to acquire a project with immediate drill targets and upside.
“Its location in a world-class gold province, proximity to infrastructure, and geological analogy to the 3.3 million ounce Lupin Mine make it incredibly compelling,” Bontempo says.
The company is committed to a minimum 1,500m drilling program within two years of completion. The transaction is subject to satisfying due diligence, shareholder approvals, and transfer of all tenements and permits.
Concurrently, Fin will conduct a two-tranche placement to raise $1.5 million through the issue of about 230.76 million shares at $0.0065 per share. The placement is expected to be completed by early December 2025.
The funds will be used for exploration across Cabin Lake, as well as exploration at the McKenzie Springs and Mt Tremblant projects.
Cabin Lake is located in the Northwest Territories of Canada within the Archean Slave Craton – one of North America’s most prolific greenstone belts.
Fin Resources is a battery metals-focused explorer with assets in Québec, Canada.
Write to Aaliyah Rogan at Mining.com.au
Images: Fin Resources
