Silk Road Energy (TSXV: SLK) has closed on its previously announced purchase of multiple gold property in Ontario. The closing follows the approval from shareholders that was granted at a meeting earlier this week.
The acquisition has seen the company acquire the Amikougami and Otto gold properties, both of which are found in the Kirkland Lake region of Ontario. The former consists of thirteen claims covering 144 hectares, while the latter consists of three claims covering just under 49 hectares.
Amikougami is found four kilometres from the Macassa Mine, operated by Agnico Eagle, while being six kilometres north of the Kirkland Lake 04-Main Break. A majority of the deposits within the region are said to lay adjacent to this break, making the property prospective for gold. The Kirkland Larder Lake Deformation Zone is believe to extend onto the property and is the focus of future exploration.
The Otto property meanwhile is found 2.4 kilometres southwest of where gold was initially discovered in the region in 1906. Located 9.0 kilometres southwest of the Macassa Mine, exploration will look to determine whether the Cadillac-Larder Lake Break, which is known to occur less than a kilometre north of the property, extends onto the Otto property. A regional fault referred to as the South Break may also extend onto the property.
The properties were acquired via the issuance of 9.0 million shares at a price of $0.05 per each, resulting in the company now sitting with 27.6 million shares outstanding. The firm now has a total of three properties in the region.
“Shareholders have voted overwhelmingly in favour of pursuing these opportunities in gold exploration,” commented Michael Judson, a director of Silk Road.
Shareholders at the meeting also voted to approve of the disposition of the firms natural gas properties.
Silk Road Energy last traded at $0.06 on the TSX Venture.
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