- Taku Gold (TAK) has signed an agreement to sell its wholly owned Tag property in northwest British Columbia to Engineer Gold Mines
- Under the terms of the deal, Engineer Gold Mines will pay a total of up to C$1.2 million for the acquisition and grant a one per cent royalty to Taku Gold
- The sale will allow the company to focus on exploration programs at its properties in the Yukon Territory
- A definitive agreement for the transaction is expected to be signed by August 31, 2020, and remains subject to relevant stock exchange approval
- Taku Gold (TAK) is currently steady at 11 cents per share
Taku Gold (TAK) has signed an agreement to sell its wholly owned Tag property in northwest British Columbia to Engineer Gold Mines.
Located 35 kilometres west of Atlin in northwest British Columbia, the Tag property consists of 26 claims over a total of 2,429 hectares.
According to an independent mineral resource estimate released in 2009, the property is thought to host an indicated resources of 250,000 at 3 grams per tonne of gold and 12.1 grams per tonne of silver.
Under the terms of the deal, Engineer Gold Mines will acquire the Tag property for up to C$1.2 million, along with a 1 per cent net smelter return royalty which may be acquired for a one-time fee of $1 million.
$100,000 of an initial $200,000 payment has already been received, with the remaining $100,000 due by November 30, 2020. The remaining consideration will be paid out in a combination of cash and common shares upon the satisfaction of certain milestones.
Today’s announcement noted that the sale of the property will allow Taku Gold to focus on exploration programs at its properties within the Yukon Territory.
Jordan Butler, CEO of Taku Gold, said the deal will enhance the company’s working capital position, as well as provide a considerable stake in Engineer Gold Mines, while providing significant optionality to future exploration and development success.
“Importantly, this agreement allows Taku to focus its efforts on its key Yukon projects in the Klondike and White Gold districts, including Rosebute, Sonora Gulch and Portland,” he added.
A definitive agreement for the transaction is expected to be signed by August 31, 2020, and remains subject to relevant stock exchange approval.
Taku Gold (TAK) is currently steady at 11 cents per share at 11:11am EDT.