Stockworks Gold (TSX-V:STW) is divesting its Cabin Lake Gold Project, located in the Northwest Territories, Canada, to Fin Resources (ASX:FIN) via a purchase and sale agreement.
The company has invested more than C$4 million ($4.36 million) into exploration at Cabin Lake over four years. Exploration has included ground and airborne magnetics, ground induced polarisation surveys, light detection and ranging mapping, and three diamond drill programs.
As reported, Fin will pay $200,000 cash to Stockworks Gold, as well as issue 30 million shares. Fin will also pay up to $450,000 in deferred consideration which will be satisfied through issuing performance rights.
Stockworks CEO Nasim Tyab says the monetisation of the Cabin Lake Project is a strategic step by the company to focus on exploring the Pirenópolis Gold Project in Brazil.
Late last month, Stockworks began a maiden exploration program, starting with a high-resolution, low level drone airborne magnetics survey at Pirenópolis.
Pirenópolis is an early stage project comprising two parallel stream catchments containing highly anomalous gold in sediment samples. The project is located along the same geological belt as Kinross Gold’s (NYSE:KGC) Paracatu mine in Brazil, which is the largest gold mine in Brazil and one of the largest globally.
Paracatu produces over 500,000 gold equivalent ounces annually and as of the end of December 2024 still held reserves of nearly 5 million ounces, expected to sustain the operation through to 2032.
Stockworks Gold is focused on advancing gold discoveries and exploration in the Americas.
Write to Aaliyah Rogan at Mining.com.au
Images: iStock
