GGX Gold Corp (CVE:GGX) (OTCMKTS:GGXXF) told investors on Wednesday it has now acquired 100% of its flagship Gold Drop project in the famous Greenwood mining camp in southern British Columbia from Ximen Mining (CVE:XIM) (OTCMKTS:XXMMF).
In a statement, the firm also announced a placing to raise C$300,000 gross to fund continued exploration, including diamond drilling and trenching at Gold Drop.
The non-brokered private placement will see GGX issue 4 million units at C$0.075 each for gross proceeds of C$300,000. Each unit comprises one share and one full share purchase warrant, which may be exercised for two years at C$0.12 per share.
The term of the warrants may be accelerated if GGX shares trade at or above a price of C$0.15 for ten consecutive days.
Gold Drop is a high grade, near surface property, which was mined intermittently from 1919 to the 1980s.
Historical production amounted to 7,572 tonnes at an average grade of 5.2 grams per ton (g/t) of gold and 93.4 g/t of silver, with the majority of production coming before 1942.
The Greenwood district was once home to 26 mines and the area has produced 1.4 million ounces of gold, 10 million ounces of silver and 0.7 billion pounds of copper, as well as lead and zinc.
Ximen retains a 2.5% net smelter returns (NSR) royalty on Gold Drop, which GGX can reduce to 1.5% by paying C$1 million. GGX thanked Ximen for supporting the firm to develop and advance the exploration success at the project.
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