The Tully property includes Tully mining claims and mining lease located in Timmins, Ontario, an exploration property in Ontario

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Image: 1911 Gold Canada has signed an asset purchase agreement 55 North. Photo: Courtesy of Tumisu from Pixabay.

1911 Gold Corporation, through its wholly-owned subsidiary 1911 Gold Canada, has completed the previously announced acquisition of the 50% stake in the Tully property from the 55 North Mining.

1911 Gold said that the Tully property includes Tully mining claims and mining lease located in Timmins, Ontario, an exploration property in Ontario.

Through the acquisition, 1911 Gold Canada becomes the 100% direct owner of the Tully Property.

1911 Gold Canada had earlier signed an asset purchase agreement with 55 North which was Havilah Mining Canada during agreement.

Under the transaction agreement, 1911 Gold Canada will acquire the legal and beneficial right, title and interest in and to all of 55 North’s 50% interest in the Tully property for consideration that included payment of $200,000 (£159,630) in cash to settle a litigation.

Additionally, 1911 Gold Canada acquired by way of non-brokered private placement  3,333,333 common shares of 55 North at a price of $0.06 per 55 North Share

The company has purchased the 55 North shares for investment purposes and in the future, it may increase or decrease its ownership of securities of 55 North, depending on the market and other conditions.

Furthermore, 1911 Gold, through 1911 Gold Canada, holds the right to nominate one individual to serve as a director of 55 North, under the terms of the agreement.

1911 Gold is a junior gold producer and explorer that owns the True North mine and mill complex and is currently reprocessing historic tailings on a seasonal basis.

Apart from operating the True North mill in Bissett, the company holds approximately 53,000 hectares of highly prospective land within and adjacent to the Rice Lake greenstone belt.

1911 Gold believes its land package is a prime exploration opportunity, with potential to develop a mining district centred on its True North facility.

The company also intends to focus on both organic growth opportunities and accretive acquisition opportunities in North America.