Gold X2 Mining (TSX-V:AUXX) has signed a definitive agreement with Sky Gold Corp (TSX-V:SKYG) to acquire interest in the Star Lake property in Canada.
Under the deal, Gold X2 has the right to earn 100% of Sky Gold’s interest in three stages. To obtain a 50% interest, Gold X2 must provide C$395,200 of assessment credits for the Star Lake Project, issue C$75,000 worth of shares, and pay the local prospector C$200,000 in cash or shares.
For stage two, the company must incur an additional C$250,000 in expenditure on Star Lake, issue C$100,000 worth of shares, and issue the local prospector C$50,000 worth of shares.
Meanwhile under stage three, Gold X2 must incur an additional C$250,000 in expenditure, issue C$125,000 worth of shares, and pay C$250,000 cash to Sky Gold. The company will also issue C$50,000 worth of shares to the local prospector.
Upon completion, the local prospector will retain a 2% net smelter return (NSR) royalty on Star Lake and Gold X2 will retain Sky Gold’s rights under the option agreement to purchase the NSR royalty in full for C$3 million.
Gold X2 CEO Michael Henrichsen says this deal represents an opportunity to make another “major discovery” in the emerging Shebandowan Greenstone Belt.
Star Lake hosts one of four gold-in-till anomalies evident in the Ontario Geological Survey’s regional till geochemistry data for the entire Shebandoan greenstone belt.
The acquisition brings Gold X2’s total land package in the Shebandowan greenstone belt to 40,456 hectares.
Gold X2 Mining is a growth-oriented gold company focused on exploring and developing the Moss Gold Project and advancing it towards the potential of becoming a top ten producer in Canada.
Write to Aaliyah Rogan at Mining.com.au
Images: Gold X2 Mining
