The Golden Giant Project is comprised of two highly prospective land packages covering approximately 8,865 hectares
First Mexican Gold acquires gold project. (Credit: Adam Radosavljevic from Pixabay)
First Mexican Gold announced the acquisition (the “Acquisition”) of a 100% interest in the Golden Giant project (the “Golden Giant Project”), located in the James Bay lowlands area of the northwestern region in the Province of Quebec. The Golden Giant Project is comprised of two highly prospective land packages covering approximately 8,865 hectares, one of which is immediately contiguous with Azimut Exploration Inc.’s Elmer project and approximately 2.8 km south of the Patwon gold discovery
The Golden Giant Project, comprised of the GGEast property (5,488 hectares) (“GGEast Property”) and the GGWest property (3,377 hectares) (“GGWest Property”) (together referred to as the “Properties”), both of which are underlain by felsic and mafic volcanic Archean rocks of the Wabamisk and Komo Formations, as shown in Figure 2, which are favourable hosts to gold mineralization in the James Bay region. The Properties are cut by regional fault structures, and have parallels to that of numerous other gold showings in the area, including Azimut’s Patwon discovery from which recent drill results included up to 3.15 g/t Au over 102.0 m (see TSX-V: AZM press release dated January 14, 2020). Of particular interest is the magnetic signature underlying the GGEast Property, which consists of disrupted high-magnetic felsic volcanics, as shown in Figure 3, which may be associated with hydrothermal alteration or the emplacement of low-magnetic felsic intrusions. Within the GGEast Property, in a small block of 4 claims not held by the Company, historical prospecting and a single drill hole resulted in the discovery of the Grid A-16 gold showing. This indicates the gold-bearing potential of this highly underexplored property. Mineralization hosted on adjacent and/or nearby properties is not necessary indicative of mineralization hosted on the Properties.
The Company is currently compiling regional government and past historical exploration data in order to prepare for an initial exploration program in respect of the Golden Giant Project during the summer 2020 field season. Initial plans include: a high-resolution drone magnetic survey to identify favourable structures and favourable felsic intrusions; prospecting and geological mapping; and ground-based induced polarization (“IP”) geophysics in order to generate drill targets.
Management Change
The Company also wishes to announce the resignation of Ms. Jessica Whitton as CEO, and thanks her for her valuable contributions over the past year. Ms. Whitton will remain as Corporate Secretary to FMG. Mr. Albert Contardi has been appointed Interim CEO of the Company in Ms. Whitton’s stead. Mr. Contardi is a consultant/adviser with over 15 years of legal, investment and capital markets experience. He is currently President of Generic Capital Corporation, a Toronto-based EMD finance firm. Mr. Contardi’s expertise involves advising and structuring corporate finance transactions in the mining, tech and bio-tech sectors to maximize the value of projects/assets. He has been called to the Ontario Bar and is a graduate of Queen’s University Law School.
Transaction Terms
The Acquisition will be carried out in accordance with the terms of a share purchase agreement (the “Share Purchase Agreement”) dated April 28, 2020, pursuant to which FMG will acquire all of the issued and outstanding common shares of 2678581 Ontario Inc. (“OntCo”), an arm’s length party, which holds a 100% interest in the Golden Giant Project. As consideration for the Acquisition, FMG will: (i) pay the initial sum of $75,000; and (ii) issue an aggregate of 3,000,000 common shares in the capital of the Company to the shareholders of OntCo.
The Acquisition remains subject to approval of the TSX Venture Exchange.
Source: Company Press Release