- Portofino Resources (TSXV:POR) has executed a binding agreement to acquire the Sapawe West Property in Ontario
- The property lies within the Steep Rock Greenstone Belt and is closely surrounded by several past-producing gold mines
- Portofino has the option to acquire 100 per cent of the property through the issuance of 700,000 common shares and additional payments totalling C$62,000
- The company is compiling all previously collected data and is establishing exploration targets for a summer field program
- Portofino Resources (POR) is currently up 9.09 per cent and is trading at six cents per share, with a market cap of $2.8 million
Portofino Resources (TSXV:POR) has executed a binding agreement to acquire the Sapawe West Property in Ontario.
While the seller was not named in today’s announcement, Portofino has the exclusive right and option to acquire 100 per cent of the property through the issuance of 700,000 common shares. A total of C$62,000 in cash will also need to be paid over a four-year period.
Sapawe West will also be subject to a net smelter royalty of 1.5 per cent. However, 0.75 per cent of this may be repurchased at any time prior to the commencement of production for a fee of $500,000.
Located in the McCaul Township nine kilometres northeast of Atikokan, the property holds three existing claims, which cover 1,147 hectares within the Steep Rock Greenstone Belt.
The region has seen several successful projects in the past. Sapawe West sits 2.5 kilometres west and along strike of the past producing Sapawe Gold Mine, which generated 4,457 ounces of gold and 1,315 ounces of silver between 1964 and 1996.
The property also lies 13 kilometres north of Agnico Eagle’s Hammond Reef gold deposit. The site is reported to host a large near-surface deposit with an indicated resource of 4.5 million ounces of gold.
In addition, Sapawe West sits along the Jack Lake Shear Zone, a possible northeast trending splay similar to the structures found at the Hammond Reef deposit.
David Tafel, CEO of Portofino Resources, said he is excited to have acquired the strategically located property.
“The nearby historic Sapawe Gold Mine, the visual results from Falcon Gold’s drill program along the same geological corridor and the lack of drilling on the property makes for a compelling exploration project with merit.
“We look forward to commencing our initial field work,” he said.
Portofino is currently compiling all available historical data and will establish key drill targets in preparation for a summer field program.
Portofino Resources (POR) is currently up 9.09 per cent and is trading at six cents per share at 10:30am EDT.