GEMXX, a publicly traded, mine-to-market gold, gemstone and jewellery producer, has signed a binding letter of intent (LoI) to acquire an initial 50% stake in the Yukon Gold Project, Canada.

As per the LOI, GEMXX will pay $50,000 non-refundable cash deposit to access Yukon Gold Project’s geological and engineer reports, other intellectual property, and other information.

The company is required to complete due diligence and prepare a definitive purchase agreement for the acquisition in 90 days.

Upon closing of the proposed transaction, GEMXX will pay the vendor in a combination of cash and shares.

The Yukon Gold Project is located south of Whitehorse in Yukon Territory. The property comprises 145 full Yukon Quartz Claims.

Exploration work such as geological mapping and prospecting, surveys, soil sampling, trenching and diamond drilling were carried out at the property.

According to a NI 43-101 Resource Report, prepared by Aurora Geosciences, the project hosts 2.21 million ounces of proven gold resources. The project may produce around 4 million ounces of gold, considering the Probable and Possible values indicated in the report.

GEMXX is also reviewing available data to determine if the project can support commercially viable production of other minerals and/or rare earth elements.

GEMXX CEO Jay Maull said: “In addition to our Snow Creek and Rosella Creek Gold deposits, the acquisition of The Yukon Gold Project will significantly increase the Company’s gold asset portfolio. Our plan to de-risk revenues through production of the world’s most sought-after commodity is happening fast.

“By adding up to 4 million ounces of gold to the Company’s assets, GEMXX will increase shareholder value and provide a long-term, stable and profitable investment for years to come.”