Trillium Gold Mines Inc (CVE:TGM) (OTCQX:TGLDF) (FRA:0702) said it has acquired what it called a “highly-prospective” property in Ontario’s Red Lake Mining District, while consolidating an additional 7,939 hectares in the Confederation Lake and Birch-Uchi Greenstone Belts.
Trillium Gold Mines also announced the acquisition of three Quebec properties in the Matagami and Chibougamou areas of Quebec as well as the Larder Lake Property, which is in close proximity to the operations of Agnico Eagle Mines and New Found Gold.
“The Trillium team is committed to building district-scale opportunities for TGM shareholders. We have grown substantially in a short period of time and now the exciting period for all shareholders begins – the drilling and discovery phase,” Trillium Gold Mines CEO Russell Starr said in a statement.
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He added: “With a robust treasury, a 35,000-meter drill program and exceptional greenfield exploration potential, Trillium Gold is positioned to be a dominant player in the world-class Red Lake gold district, which will be the main driver for shareholder value.”
The company noted that its new acquisitions have seen limited exploration and believes there is “considerable potential for future shareholder value.”
Trillium Gold added that the extension of its asset base into the Larder Lake gold camp includes a 12 kilometre (km) strike length along the eastern extension of the highly-mineralized Kirkland Lake Fault, and into Quebec, where the company’s Fenelon property is situated about 65 km southeast of Detour Lake and within 7 km south of BHP's historic Selbaie Mine, one of the largest producers of zinc, copper, gold and silver concentrates in the late 1990s.
The company said the three properties acquired in Quebec include the Jamesie Property, located less than 20 km due south of Matagami and 160 km north of Val d'Or where Glencore holds a large property east and north, which is also contiguous to Eldorado Gold's property to the west and displays the same structures and geology.
The other two Quebec properties are the 25-claim SW Fenelon property, located 65 km south-east of Detour Lake, and the Opawica Property located 67 km southwest of Chibougamau, consisting of 33 claims and 3,677 hectares.
In order to acquire all of the properties under the option agreement, Trillium Gold is required to pay $618,200 over a period of three years, issue a total 410,000 common shares, and grant to the vendors a 1.5% net smelter royalty over each of the properties acquired.
Trillium Gold Mines has the right to repurchase 50% of each royalty by paying the holder $500,000 per royalty.
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