The Shear Gold Project covers a total area of approximately 98km2 and is located within the gold endowed Kenora Mining District
Panther Metals PLC (LSE:PALM) the company focused on mineral exploration in Canada, is pleased to announce the company has entered into an option and sale and purchase agreement (the “Agreement”) with Shear Gold Exploration Corporation (“Shear Gold”) to purchase a substantial claim holding (the “Shear Gold Project” or “Project”) including the West Limb and Glass Reef gold properties, on the Eagle – Manitou Lakes Greenstone Belt.
The Shear Gold Project covers a total area of approximately 98km2 and is located within the gold endowed Kenora Mining District, approximately 300km east of Thunder Bay and equidistant between the towns of Fort Frances and Dryden in north-western Ontario, Canada.
The terms of the Agreement are set out below.
Darren Hazelwood, Chief Executive Officer, Panther Metals plc commented:
“The gold potential of the Manitou Lakes area and the wider Kenora Mining District of Ontario has been on Panther’s radar for some time. The opportunity to take a substantial new stake in this exciting belt has greatly enhanced the Company’s exploration portfolio and widened our exposure to potential gold and base metal discoveries.
It was paramount to Panther that we had the organisational structure in place to support an entry into the Manitou Lakes area and it’s great that the experienced Ontario geologist, Ryan Hrkac, will be working with us on a package he diligently put together through Shear Gold.
The recent sale of an immediately adjacent project, announced in March by Manitou Gold Inc, for CAN$7 million to the private company Dryden Gold underpins the value attributed to the Manitou exploration address. Dryden Gold is backed by the founders and management of Ely Gold Royalties Inc., which sold for approximately CAN$300 million in 2021.
It is paramount that a successful explorer should have the time, expertise and capital to invest in its project portfolio. The Big Bear Project disposal which Panther announced today, enables Panther to take up new opportunities in a third Ontario greenstone belt, under a controlled and well managed structure, whilst retaining and building our upside on the Schreiber-Hemlo Greenstone Belt through the Company’s planned major shareholding in Fulcrum.
The exploration sector is entering a gradual growth phase following a long period of underinvestment and it’s my belief Panther Metals Plc is one of the best placed explorers to take advantage of the growing mineral supply chain appetite and the significant shift in the global risk landscape.”
A cash consideration of $11,325 Canadian dollars (“CAD$”) has been paid to Shear Gold Exploration Corporation in order to secure the option and sale and purchase agreement, under which Panther has committed to:
· a minimum spend commitment of:
o CAD$325,000 to be expended over years one and two; and
o a further CAD$400,000 to be expended between the second and fourth annual anniversaries of the Agreement. Any excess spend in years one and two can be offset against expenditure in years three and four.
· grant Shear Gold a net smelter return (“NSR”) royalty of 2% over the 32 multicell mining claims (the “Claims”) covered in the Agreement. Panther can elect to purchase 50% of the NSR (reducing the remaining royalty to 1%) for the sum CAD$1M at any time.
· Panther Metals Plc can elect at any time to purchase the Claims outright through a payment of CAN$250,000 to Shear Gold.
Source: Company Press Release