Getchell used the proceeds of the Debenture Financing to pay the final US$1.6 million cash payment to Canagold in order to acquire the Properties.
Getchell acquires Fondaway Canyon Gold Project. (Credit: Chris Wiedenhoff from Pixabay)
Getchell Gold Corp. (CSE: GTCH) (OTCQB: GGLDF) (FWB: GGA1) (“Getchell” or the “Company”) is pleased to announce that the Company has delivered the final US$1.6 million earn-in option cash payment and US$1 million share issuance to acquire a 100% interest in the Fondaway Canyon and Dixie Comstock gold properties (the “Properties”) located in Nevada.
“The 100% acquisition of the Fondaway Canyon gold project is a major milestone event for the Company.” Bill Wagener, Chairman and CEO, commented. “The Fondaway Canyon project has been an eye opener from day one with every drill hole, over three drill campaigns in the Central area, contributing to a doubling of an already sizable historic resource. The closing of this acquisition serves as an immediate injection of significant value into the Company, and considering that the gold mineralization remains open in most directions, adds an indeterminate amount of future potential value waiting to be discovered.”
Under the terms of the option agreement (the “Option Agreement”) with Canagold Resources Ltd. (“Canagold”) executed on January 3, 2020, the Company had the option to acquire 100% of the Properties by paying Canagold a total of US$2 million in cash and US$2 million in the Company’s shares staged over 4 years. The Company also has to make work commitments totaling US$1.45 million over the four years, which have been fully satisfied, and grant a 2.0% net smelter return royalty (“NSR Royalty”) on each of the Properties to the Option or on the exercise of the Option.
In the preceding three anniversary payments, the Company has paid a total of US$400,000 in cash and issued US$1 million in the Company’s shares.
The Company has delivered to Canagold a US$1.6 million cash payment, issued 10,167,000 shares, and granted a 2.0% NSR Royalty to Canagold which satisfies the earn-in requirements, and the Company now owns 100% of the Properties. The Company has the option to repurchase half of the NSR Royalty (i.e., a 1% net smelter royalty) on each of the Fondaway Canyon property or the Dixie Comstock property for US$1 million.
Fondaway Canyon Gold Project
Getchell Gold Corp. is delineating a potential Tier-1 gold resource at its flagship Fondaway Canyon gold project in Nevada, USA.
Following three consecutive successful drilling programs, the Company has effectively doubled the size of the historic resource, firmly placing Fondaway Canyon amongst the foremost developing projects in a world class mining jurisdiction. The Company recently published its first Mineral Resource Estimate (“MRE”) at Fondaway Canyon, as disclosed in the Company’s news release dated February 1, 2023:
Gold mineralization is at and near surface supporting an Open Pit mine model;
Inferred Mineral Resource of 38.3 million tonnes at an average grade of 1.23 g/t Au for 1,509,100 ounces of gold;
Indicated Mineral Resource of 11.0 million tonnes at an average grade of 1.56 g/t Au for an additional 550,800 ounces of gold;
Strong gold mineralization in the most peripheral drill holes leaves the mineral resources open in most directions for further expansion and indicates a substantially larger body of mineralization than delineated to date (Company news release dated August 9, 2023); and
Fully permitted drill program designed to expand the mineral resources and upgrade Inferred Resources to Indicated.
Getchell Gold Corp. is now in a position to continue expanding the Mineral Resource Estimate and preparing a Preliminary Economic Assessment.
Source: Company Press Release