Falcon Gold said that the two claims cover 8,400m of strike length of mineralised magnetite-sulphide lenses varying more than 40m in width
Canadian mineral exploration firm Falcon Gold has signed a memorandum of understanding (MOU) with Great Lakes Exploration (GLE) to acquire the latter’s two large patented claim blocks in the North American country.
Falcon Gold seeks to acquire 476ha of patented mining claims including patented surface rights, located along strike of Falcon’s Central Canada Project.
In a press statement, Falcon Gold said: “The Central Canada Project and the patented ground boast excellent infrastructure with a natural gas pipeline, CN railway, high-voltage power transmission lines, and the Trans-Canada Highway located within 2 kilometers of the project.”
The MOU will allow Falcon Gold to complete the due diligence and work towards the signing of a definitive agreement with GLE on or before 01 June 2020.
Falcon Gold to initially acquire 80% interest in the claim blocks
Falcon Gold will have an option to acquire 80% interest in the claim blocks by paying $25,000 within 45 days of signing the agreement.
In addition to making option payments of $45,000 to maintain the patented properties, Falcon Gold will have to incur at least $146,900 expenses on the property within the first 18 months.
Subject to completion of 80% acquisition, Falcon will have an option, for 36 months period, to acquire the remaining 20% interest by making further payment of $130,000 to GLE.
Falcon CEO and director Karim Rayani said: “This MOU furthers Falcon’s vision to consolidate the lands on the Central Canada Belt for the first time under one company. This ground is a strategic acquisition for Falcon as we continue to develop the Central Canada Project.
“We have now secured the necessary land position, including the known occurrence of certain mineralization, to quickly advance the project and seek to expand the size and economic potential for base and precious metals.”
Falcon Gold said that the two claims cover 8,400m of strike length of mineralised magnetite-sulphide lenses varying more than 40m in width.