Palisades Goldcorp Ltd (CVE: PALI) (OTCMKTS: PLGDF) is planning to acquire privately-held Undercover Gold and its Nevada land holdings through an upcoming share purchase agreement.
The resource investment company revealed Monday that it has entered a non-binding letter of intent to do so. It would see that Palisades’ junior gold exploration subsidiary, Made in America Gold Corp. (MIAG), acquires 73 square kilometres of mining claims in the state’s Battle Mountain — Eureka trend.
This prolific trend is known to host major gold mining operations run by Nevada Gold Mines, i-80 Gold Corp (TSE: IAU) (NYSE: IAUX) and SSR Mining Inc (NASDAQ: SSRM).
It is one of the Earth’s top producing gold belts, having churned out over 250 million ounces to date. The trend yields average grades ranging between 3 to 12 grams per tonne gold, making it world-class.
The pending deal, expected to close by Feb. 10 next year, would establish Palisades MIAG unit as the largest junior landholder in Nevada’s mining industry. It brings the company’s total footprint up to approximately 800 square kilometres.
“This [addition of the South Cortez and South Tonkin mineral properties] strengthens our position and adds ground directly adjacent to major multi-million-ounce systems,” said chief executive on social media.
“This is the opportunity of a lifetime,” Daley also stated in an interview on Nov. 16. “It’s not every day that a portfolio of this size and stature comes along.”
In addition to his role as CEO at MIAG, the Harvard-educated geologist currently serves as VP of Exploration at Nevada King Gold Corp (CVE: NKG) (OTCMKTS: NKGFF) and is a director at rare earth elements exploration company Neotech Metals Corp (CNSX: NTMC) (OTCMKTS: NTMFF). Palisades currently holds a 3 per cent stake in Nevada King’s Atlanta gold mine.
In exchange for the land holdings, private shareholders of Undercover Gold would receive a 10 per cent equity stake in MIAG. This interest implies a valuation of US$25 million for the Palisades subsidiary post-completion of the transaction.
Undercover Gold is one of a handful of companies founded by NewQuest Capital Inc. Nevada and Idaho precious metal explorer Headwater Gold Inc (OTCMKTS: HWAUF) (CNSX: HWG), Australian copper prospector Inflection Resources Ltd (OTCMKTS: AUCUF) (CNSX: AUCU) (FRA: 5VJ) and Conduit Nickel are others of significance.
Palisades currently has a portfolio valued at US$155 million. It is comprised of a 9 per cent stake in New Found Gold Corp (CVE: NFG) (NYSEAMERICAN: NFGC) (FRA: 5QG), full ownership of MIAG, a 100 per cent interest in the uranium prospector Radio Fuels Corp. and an assortment of junior resource equities and warrants.
Read more: NevGold surges after closing C$10M financing deal
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