Fokus Mining Corp. [FKM-TSXV, FKMCF-OTCQB, F7E1-FSE] has stuck a $3 million asset purchase agreement with Visible Gold Mines Inc. [VGD-TSXV]. Under the agreement, Fokus is acquiring 100% interest in six properties located along the Cadillac-Larder Lake Fault near Rouyn-Noranda, Quebec.
Fokus Mining shares advanced on the news, rising 12% or $0.015 to 14 cents. The shares trade in a 52-week range of 20 cents and $0.03. Visible Gold was unchanged at $0.08 and trades in a 52-week range of $0.095 and $0.06.
The package includes the Cadillac Break, Lucky Break, Silidor, Stadacona, Wasa Creek, and Wasa East projects, plus a 40% interest in one property, the Capricon project. The acquired properties total 6,473 hectares across 215 exclusive exploration rights, significantly increasing Fokus land holdings in the region and providing high-potential exploration upside adjacent to major gold systems, including Agnico-Eagle Mines Ltd.s [AEM-TSX, AEM-NYSE] Wasamac project and Fokus flagship Galloway project.
Under the agreement with Visible Gold, Fokus will acquire the properties for $3.0 million, consisting of $750,000 cash on closing, and $1.5 million worth of Fokus shares. The number of shares will be determined by the volume weighted average trading price of the common shares for five business days immediately preceding the closing date. Fokus will also pay an additional $750,000 in cash on a date that is three months following closing of the transaction.
Fokus Mining is a mineral resource company that is actively acquiring and exploring precious metal deposits located in Quebec.
Three years ago, Fokus confirmed the presence of a significant copper-gold porphyry system at its Galloway project, which is located in Dasserat Twp., the Abitibi West area of Quebec. The property results from the amalgamation of a number of claim blocks and is situated on the Cadillac-Larder Lake Fault.
The 100%-owned Galloway project covers an area of 2,865.54 hectares and is located just north of the Cadillac-Larder Lake deformation, which extends for more than 100 kilometres. Numerous gold deposits are associated with the structure and its subsidiaries. Recent work focused on the western part of the mineral claims and has allowed the company to delineate a NI 43-101-compliant inferred resource of 1.42 million ounces of gold at a price of US$1,750 an ounce. The estimate was published in a March, 2023 press release, which includes a sensitivity table showing that at a gold price of US$1,960 an ounce, the inferred resource increases to 1.78 million ounces.
Fokus said the expanded land package resulting from the deal with Visible Gold is strategically located within one of Canadas most productive gold belts, surrounded by major industry players within a 25-kilometre radius of the companys flagship Galloway Project.
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