Mariner Resources (CSE: RNR) this morning announced that it will be acquiring Exploits Gold Corp, a major landholder in Newfoundland focused on gold exploration in the Exploits Subzone in the central area of the province. Located in close proximity to recent findings by New Found Gold Corp (TSXV: NFG), the firms two properties consist of 234.75 square kilometres via 939 mineral claims.
The two projects, referred to as Jonathan’s Pond and Mt Peyton, both contain gold mineralization. In the case of the former, visible gold bearing quartz veins that are up to 3 meters wide can be seen on the property, with grab samples measuring up to 28.82 grams per tonne gold. In the case of the latter, there is a fifteen kilometre strike length anomaly that has returned float grab samples of up to 25.8 grams per tonne gold.
A geological team has already been mobilized to the Jonathan’s Pond project, with the focus being to extend new surficial exposure of gold mineralization. Both projects currently are fully permitted for trenching, geochemical sampling and geophysical surveys, while containing high priority targets.
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Most significantly, the acquisition makes Mariner the largest land tenure holder within the province, having claims that cover 1,760 square kilometres.
In connection with the transaction, the company will be changing its name to Exploits Discovery Corp, and it has applied to change its trading symbol to “NFLD”.
The purchase of Exploits Gold Corp is being facilitated through the issuance of 18,810,752 common shares of the company, which will be subject to a lock up period. One third of the shares will unlock every six months, with the final shares being unlocked at 18 months from the date of close. 600,000 stock options are also being issued in connection with the transaction, with a strike of $0.15.
Finally, a private placement is being conducted in connection with the acquisition for gross proceeds of $3.5 million. Each unit will be sold at a price of $0.35, with each unit containing one common share and one half of a purchase warrant, with an expiry of 12 months and an exercise price of $0.75.
Further information on the Exploits Gold Corp properties can be found here.
Mariner Resources last traded at $0.60 on the CSE.
Information for this briefing was found via Sedar and Mariner Resources. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
