Snowline Gold Pays $6.6 Million In Cash And Shares To Consolidate Einarson Ownership
Snowline Gold (TSXV: SGD) has consolidated its Einarson project in British Columbia, following the acquisition of a privately held 30% stake in the project.
The company has acquired a 30% interest in 3,003 mineral claims, which total 61,000 hectares. As part of the purchase, the company has also acquired ownership over the Venus target, which is adjacent to the Einarson project and has had historical drill intersections of 9.67 g/t gold over 38.7 metres. The purchase is also said to include interest in “several additional claims,” as well as certain physical assets.
Total consideration for the interest is comprised of a cash payment of $1.2 million, the issuance of 1.01 million shares (valued at roughly $5.4 million), and a 2% NSR on the Venus claims, which can be reduced to 1% in exchange for 1,000 ounces of gold or the cash equivalent at time of exercise. Up to seven $1.0 million one time cash bonuses must also be paid, depending on resource estimates prepared on certain claims.
READ: Snowline Gold Sees Major Shareholder Return After Warrant Exercise
“We are thrilled to consolidate the Einarson Project and to acquire a full 100% interest in our Jupiter discovery alongside other promising targets. The quantity and scale of the gold targets identified at Einarson through regional baseline work and follow-up prospecting were a big part of our motivation for launching Snowline Gold in 2021. The targets themselves are compelling, and they indicate strong regional gold fertility across Einarson, Rogue and our surrounding projects,” commented CEO Scott Berdahl.
The Einarson Project hosts the Jupiter discovery, which has hit mineralization that includes 13.2 g/t gold over 6.5 metres, 10.5 g/t gold over 5.0 metres, and 13.90 g/t gold over 6.0 metres.
Snowline Gold last traded at $5.36 on the TSX Venture.
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