MegumaGold Corp (CSE:NSAU) (OTCMKTS:NSAUF) has made a move into the hot palladium space with the acquisition of five mineral claims in the Similkameen mining division of British Columbia.
The company aims to immediately begin surface work, mapping and sampling there and planning for a bigger work program.
Palladium, used in catalytic converters in vehicles, was already up 46% in the year so far when it hit an all-time high of US$2,829.75 an ounce this month.
Earlier this month (February), chemicals giant Johnson Matthey said auto-related demand rose to a record 9.7 million ounces, putting the 2019 supply deficit at 1.19 million ounces and said it was “likely to deepen in 2020".
The new claims are seven and 20 km north-west of Copper Mountain. MegumaGold president Theo Van der Linde said: "The district at one time was the principal producer of palladium in North America.
All time high
"Being Palladium is at an all-time high and not expected to slow down, due to the recent realization of the massive shortfall of the metal, we feel Meguma has substantial means to aggressively explore the recent acquisition being the region and its geological setting is well known for palladium yet has been relatively under looked and underexplored."
The claims will be bought from arm’s length vendors for C$125,000, and 6 million fully paid and non-assessable shares subject to all necessary approvals from the Canadian Securities Exchange.
Megumagold is a Canadian junior gold explorer and since 2018 has been focused on developing the Meguma Supergroup gold district in Nova Scotia.
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