Sovereon Gold Corp will buy Giant Mining’s (CSE:BFG) 16% shareholding in Premium Exploration USA (PEM.V).
The March 6 share purchase agreement involves transferring ownership of 160 common shares in Premium Exploration from Giant Mining to Sovereon Gold worth a total of US$1 million (A$1.4 million).
The secured promissory note will mature 18 months from the date of issue at a 6% per annum interest rate, which is payable on the maturity date.
As security for the note, Sovereon will grant Giant Mining a security interest in subject shares. Subject shares will be pledged, mortgaged, charged, and assigned in favour of Giant Mining until repayment obligations are met.
“This transaction represents a strategic monetisation of a non-core asset while maintaining downside protection through a secured structure,” Giant Mining Corp President and CEO David Greenway says.
“Proceeds strengthen our financial position and allow us to remain focused on advancing our flagship Majuba Hill Project, where we see significant potential to deliver long-term value for our shareholders.”
Premium Exploration fully owns the Friday Gold Project, 16km southwest of Elk City in Idaho, US. The project has a mineral resource estimate of 1.24 million ounces of gold.
Meanwhile, Giant Mining has updated its 2026 drill program to add two deep diamond drill holes within its previously announced core drill program.
The program involves drilling up to 10,000 feet (3km) deep to test high-priority targets at the Majuba Hill Copper-Silver-Gold Project, 156 miles (251 km) northeast of Reno in Nevada, US.
Integrated geological data and artificial intelligence-assisted targeting tools will be used to support geological interpretation.
“Deep drill holes are designed to test priority zones identified through this data-driven approach, including areas beneath historical workings that remain underexplored by modern drilling, based in part on work conducted by previous operators – including historic drilling by Freeport Sulfur in the 1940s and Mine Finders in the 1970s,” Greenway says.
“By combining advanced analytics with core geological interpretation we aim to better define the scale and continuity of mineralisation at depth.”
Giant Mining is a copper, silver and gold mining company with assets mostly in North America.
Write to Richard Szabo at Mining.com.au
Images: Giant Mining
