The Vancouver miner GGL Resources Corp. (TSX-V: GGL) is selling its McConnell copper-gold property to WestKam Gold Corp. (TSX-V: WKG) for 20 per cent of WestKam’s issued and outstanding shares and will retain a 2 per cent net smelter return royalty on the project going forward.
The companies announced the sale and acquisition on Monday for the property in northwestern British Columbia’s Golden Horseshoe region. McConnell is comprised of five mineral claims and spans approximately 8,700 hectares.
“The completion of this acquisition will provide WestKam with a major exploration project that checks all the boxes: critical metal and gold targets, road accessible, near other mines in a world-class exploration district and acquired for what we believe is a fair cost,” said WestKam’s CEO Peter Laipnieks.
The property currently has active exploration and drill permits and a series of copper-gold porphyry-style systems have been identified there. It has had over $4 million worth of previous exploration work conducted in recent years.
“The McConnell sales agreement allows considerable upside potential for GGL by way of a significant equity position in Westkam and a secured royalty on any future production,” said GGL’s President David Kelsch.
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NevGold Corp (TSX-V: NAU) (OTC: NAUFF) is another Vancouver gold producer actively involved in British Columbia’s mining industry. The junior miner recently established a subsidiary to focus solely on its Ptarmigan gold-silver-copper project in the southeastern corner of the province.
NevGold created the soon-to-be publicly listed entity 416753 B.C. Ltd. (SubCo) so that it could focus on its flagship projects in Washington and Nevada while giving Ptarmigan the attention it deserved through a separate company. Similarly, GGL Resources has sold the McConnell project so that it can focus on its Gold Point project in Nevada where the company recently made a significant discovery.
“Additionally, this transaction will allow GGL to continue its focus on the Gold Point project in Nevada where the company is successfully exploring high-grade gold veins both at surface and in underground workings and where it has recently discovered a nearby copper-molybdenum porphyry target named the Le Champ De Gold Point,” said Kelsch.
NevGold shares dropped by 1.28 per cent Monday to $0.38 on the TSX Venture Exchange and have risen by over 20 per cent since January.
GGL stock rose by 11.11 per cent to $0.05 and Westkam shares stayed flat at $0.075 on the TSX Venture Exchange.
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