Explorex Resources Inc (CSE:EX) (OTCMKTS:EXPXF) announced a major new acquisition on Monday that gives the cobalt explorer 100% interest in a high-grade gold and copper project in British Columbia.
The Vancouver-based company inked a deal to acquire the 803-hectare Bonanza Mountain project in the historic Knight’s mining camp near Grand Forks in the western Canadian province.
Bonanza Mountain saw historic mining throughout the later part of the 19th century and into the early 1900s, with news reports in 1897 detailing numerous veins of iron and copper sulphide outcrop that returned grab sampling showing the presence of high-grade gold and copper.
Activity on the project seemingly ceased around 1901, after which local papers and records stopped mentioning any mining or exploration work on the property.
Today, Bonanza Mountain consists of three claims totaling 803 hectares accessible by roads and nearly 20 kilometres north of the town of Grand Forks, which is located near the Canada-US border.
"The Bonanza Mountain Project warranted significant exploration and development activity at the turn of the 19th century, but then disappeared from the historic record,” said Mike Sieb, president at Explorex. “This has provided Explorex the opportunity to acquire a recognized high-grade gold and copper prospect in a well-known gold mining camp quite economically.”
Explorex acquired Bonanza Mountain from an unnamed vendor in a cash-and-stock deal that sees the firm making an upfront payment of C$4,000 and issuing 300,000 shares of its subsidiary 1223104 BC Ltd within 10 days of a listing on a Canadian stock exchange.
The vendor will retain a 1.5% non-smelter return (NSR) royalty, of which 1% can be repurchased for C$1 million to bring the NSR down to 0.5%.
Explorex is earning a 75% interest in the polymetallic Kagoot Brook project in New Brunswick and an option to acquire 100% interest in the Buena Vista Hills cobalt project in Pershing, Nevada.
Shares of Explorex were trading at C$0.17 on the Canadian Securities Exchange and US$0.13 over the counter by midday Monday.
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