The mining newspaper for Alaska and Canada's North
The mining newspaper for Alaska and Canada's North
TerraX Minerals Inc. May 13 reported an agreement to sell an additional 1 percent net smelter return royalty on its Yellowknife City Gold project in the Northwest Territories to Osisko Exploration James Bay Inc., a wholly-owned subsidiary of Osisko Gold Royalties Ltd. To purchase this option, Osisko Exploration will pay TerraX C$1 million in cash.
The agreed to option entitles Osisko Exploration to purchase the royalty by paying an additional C$2 million within three months following the start of production at Yellowknife City Gold.
This 1 percent NSR is in addition to the existing Osisko Exploration option to acquire a 2 percent NSR for the project - subject to underlying royalties to certain property vendors, and payment of C$2 million within three months of the start of production from those properties.
Osisko will also invest up to C$2.5 million into TerraX through the purchase of a non-brokered flow-through private placement of common shares at a premium to market, subject to these conditions, including a concurrent completion of a C$3.5 million private placement by TerraX. On May 17, TerraX announced plans to complete the financing by selling 7.7 million flow-through units at C55 cents per share.
The proceeds of this private placement, along with the C$2.5 million invested by Osisko, will fund an extensive exploration program at Yellowknife City gold, expected to start in June.
Prior to the financing, Osisko Exploration owns 9.24 percent of the common shares of TerraX. Additionally, TerraX reported assay results from the final 15 holes drilled in the 2015 winter drill program at Yellowknife City Gold.
Eleven of these holes tested the southern strike extension of gold mineralization intersected at the Barney Zone, as well as the up-dip of the zone to 90 meters vertical depth.
TerraX said all these holes hit the mineralized shear where expected.
Highlights include: 14.09 meters grading 2.96 grams per metric ton gold in hole TBY15-005; and 15 meters 1.59 g/t gold in hole TBY15-003.
The remaining four holes were drilled to test the projected intersection of the Crestaurum Shear and Shear 20 to the west of Barney.
TerraX believes that information obtained from this drilling will aid in successfully targeting the Crestaurum-Shear 20 intersection point in the next phase of drilling.
Over his more than 16 years of covering mining and mineral exploration, Shane has become renowned for his ability to report on the sector in a way that is technically sound enough to inform industry insiders while being easy to understand by a wider audience.
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