The Shaw Gold Property gold property is comprised of 18 single or multi-cell claims covering approximately 693 hectares
Regional location of the Shaw Gold Property, Timmins, Ontario. (Credit: CNW Group/First Energy Metals Limited)
First Energy Metals Ltd. (CSE: FE) (“First Energy” or the “Company) is pleased to announce that it has entered into an option agreement to acquire Shaw Gold Property located in Timmins Area Ontario, Canada. Pursuant to a property purchase between the Optionor and the Company, dated September, 22 2020 (the “Effective Date”), First Energy holds an option to acquire a 100% interest in the Shaw Property by paying cash payments of $96,000 and the issuance of 600,000 common shares over a 3-year period.
The Shaw Gold Property gold property is comprised of 18 single or multi-cell claims covering approximately 693 hectares located in Shaw, Eldorado, and Whitney Townships, near Timmins Ontario. The property is located just 7km southeast of Newmont’s Dome Open pit and 5km south of the Destor-Porcupine Deformation Zone (Figure 1). The Timmins Gold Camp has produced over 70 million ounces of gold from 50 gold mines over the last 100 years.
At the Bay Lake Gold Showing on the Property a 12m shaft was sunk circa 1930’s on a 1.37m wide quartz vein which returned composite samples of 150.8 g/t Au, 43.2 g/t Au and 35.17 g/t Au. Historical grab samples returned 766.2 g/t Au and 229.7 g/t Au.
Previous historical exploration at the Turner Gold Showing has intersected gold mineralization from a 1972 drill program by Flint Rock Mines in felsic tuffs and a fuschite-bearing carbonate zone.
The QP and the Company has not completed sufficient work to verify the historic information on the properties comprising the Shaw Gold Property, particularly regarding historical exploration, neighbouring companies, and government geological work.
This above noted agreement is with a non-related party and there are no directors, officers or senior management in common. Closing of the Transaction is subject to obtaining all required approvals, including the CSE and including any other regulatory approval.
“We are excited to acquire the Shaw Gold Property” states Gurminder Sangha, CEO of First Energy Metals. “The acquisition follows our business strategy to acquire properties of merit in well established and historical mining camps in order to unlock their full potential through modern-day exploration and deposit model types.”
In addition, the Company would like to revise the terms of the previously announced private placement in its August 25, 2020 press release. First Energy initially proposed to issue up to 13,333,333 units at $0.15 per unit, with each unit comprised of one common share and one half of one share purchase warrant, each whole warrant entitling the holder to purchase one additional common share $0.30 per share for one year.
First Energy would like to amend the private placement as follows:
- issue up to 10,000,000 Hard-dollar units at $0.15 per unit rather than up to 13,333,333 units
- issue up to 3,333,333 flow-through shares at $0.15 per share with no warrant
The proceeds will be used for exploration and development of the Company’s mineral properties and general working capital. One or more existing insiders may be participating in the financing as approved by independent directors. The Company is relying on an exemption from the related party requirements of MI 61-101.
In connection to the above noted non-brokered private placement, finder’s fees may be paid to eligible finders in accordance with the policies of the CSE. Closing of the proposed private placement is subject to obtaining all required approvals, including from the CSE and any other regulatory approval. The securities will be subject to a four-month hold period plus one day under applicable securities laws.
Source: Company Press Release