Manhattan Corp’s (ASX:MHC) shares have surged more than 64% on the back of entering into a binding agreement to acquire the Hook Lake Project in Nunavut, Canada.
The Hook Lake Project, covering 423km2, hosts the Turquetil Lake gold deposit and several other gold and polymetallic volcanogenic massive sulphide prospects.
Manhattan, which saw its share price jump more than 47% to $0.028 at the time of writing today (12 May), will acquire privately held 6106 Resources from Eric Sondergaard.
The company will pay $185,000 cash, as well as issue 200 million shares and 150 million performance rights. Manhattan will also grant a 2% net smelter royalty to the vendor.
BDO Corporate Finance has been engaged to prepare an independent expert’s report for the transaction, which will be provided to shareholders with a notice of meeting to seek share approval in due course.
The transaction is anticipated to be completed in August 2025.
Concurrently, mining and resources industry company director and entrepreneur Gavin Rezos and Sondergaard will join Manhattan’s board as non-executive director and technical advisor, upon completion of the transaction.
CEO Kell Nielsen says the acquisition brings with it an experienced team expected to join Manhattan’s board and management upon completion.
“This team will play a critical role in unlocking value by advancing the historically defined high-grade Turquetil Lake gold deposit through modern exploration techniques and by honouring the current agreement with Inuit landowners,” Nielsen says.
“Upon the transfer of the project, there is a clear pathway for Manhattan to test the mineralised system further along strike and at depth at Turquetil Lake and deliver near-term maiden mineral resources.”
Hook Lake remains largely dormant since 1988 when drilling activities defined a foreign estimate of 3.4 million tonnes @ 2.38 grams per tonne gold for 285,000 ounces.
Manhattan Corp is a lithium and gold explorer with three strategically located projects in emerging and under explored districts within Australia and Canada.
Write to Aaliyah Rogan at Mining.com.au
Images: Manhattan Corp
