MegumaGold Corp (CSE:NSAU) has increased its footprint at its Greater Goldenville gold project in Nova Scotia with the acquisition of 203 new claims.
It owned 204 previously and the new claims, which are adjacent to and on-strike with its project, make the company the largest claim holder in the gold district.
It also scales up the group's operating base and exploration portfolio in the area by around 85%, it said in Friday's statement.
READ: MegumaGold confirms discovery of three arsenic-gold targets at Touquoy West project, Nova Scotia
The claims were bought from an arm’s-length vendor at a cost around the same as the mining license fees paid to the Nova Scotia government. A 2% gross royalty was granted on the claims as part of the deal.
MegumaGold delivers a substantial investment proposition for our shareholders and is at the forefront of gold exploration in Nova Scotia," said Theo van der Linde, the president of MegumaGold.
"Our corporate-owned mining rights in the Goldenville Gold District are unrivaled in scale, something which is further bolstered by today’s acquisition.
Excited about potential
"We are excited about the potential for MegumaGold within the Goldenville Gold District and equally elsewhere across our dominant gold exploration holdings in Nova Scotia."
Meguma's claims at Goldenville lie along strike and adjacent to Osprey Gold’s (CVE:OS) property. Around 212,300 ounces of gold were mined in the area between 1862 and 1942.
The adjacent Osprey Gold property hosts an NI 43 101 inferred resource of 2.8 million tonnes at 3.20 g/t of the yellow metal for 288,000 contained ounces.
Shares advanced over 11% in Toronto to stand at C$0.15.
---Updates for share price---
Contact the author at [email protected]