Fancamp Partners with Lode Gold to Enhance Mineral Assets
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Fancamp Exploration Ltd. Enters Strategic Agreement
Fancamp Exploration Ltd. (“Fancamp” or the “Company”) (TSX Venture Exchange: FNC) is thrilled to announce a significant agreement with Lode Gold Resources Inc. (“Lode Gold”) and 1475039 B.C. Ltd. (“Spin Co”, also known as “Gold Orogen”). This collaboration aims to advance the exploration and development of various mineral properties situated in the Yukon and New Brunswick regions.
Transaction Overview
The agreement entails several key transactions:
- Lode Gold will transfer its interests in the McIntyre Brook mineral property located in New Brunswick to a newly formed joint-venture entity (“JV Co”), while Fancamp will transfer its interests in the Riley Brook mineral property to the same entity, with both parties owning 50% of JV Co.
- Additionally, Lode Gold will convey both its Golden Culvert and Win mineral properties to Spin Co.
- Fancamp intends to invest $2,500,000 into Spin Co in exchange for 19.9% of its outstanding shares after completion of the spin-out transaction, with projections for around $3,000,000 in proceeds from an indirect flow-through offering.
- Furthermore, an equity private placement will seek to raise an additional $1,500,000 for Spin Co.
- Funding is allocated for exploration activities, with approximately $1.86 million designated for New Brunswick and around $1.56 million for Yukon.
- Fancamp will also invest $500,000 into Lode Gold for special warrants.
- Moreover, Lode Gold will execute a spin-out transaction, distributing shares of Spin Co to its shareholders.
The completion of these transactions is contingent upon the approval of the TSX Venture Exchange (the “TSX-V”).
Strategic Rationale for Investment
New Brunswick Joint Venture
The joint venture with Lode Gold is focused on one of the largest, underexplored land packages in New Brunswick, a region renowned for gold and polymetallic mineral potential. This partnership positions both companies as pivotal players in an emerging exploration area. By combining Fancamp’s substantial landholdings and Lode Gold’s assets, the two companies are well-positioned to enhance their exploration initiatives effectively.
Investment in Gold Orogen
Fancamp’s collaboration will create significant value, establishing it as a strategic shareholder in both Lode Gold and Spin Co. This new strategic positioning will provide exposure to four mineral exploration assets located in mining-friendly territories, namely the Yukon and New Brunswick. The Yukon properties alone encompass a 99.5 km² land package featuring promising gold mineralization trends.
Rajesh Sharma, President and CEO of Fancamp Exploration, remarked, “This transaction reflects our ongoing commitment to identifying growth opportunities by leveraging solid financial backing and industry expertise. The New Brunswick joint venture unites valuable resources from both companies to lead exploration efforts in the region.”
Wendy T. Chan, CEO and Director of Lode Gold, added, “This alliance between Lode Gold and Fancamp is a transformative transaction that marks a significant step forward for both companies, enabling us to enhance our cornerstone mineral projects through collaboration.”
Transaction Details
The transaction comprises various elements:
Property Transfers and Joint Venture Agreements
- Lode Gold will transition its Golden Culvert and Win properties to Spin Co.
- JV Co will oversee the operations concerning the McIntyre Brook and Riley Brook properties.
- Fancamp is endowed with a 2% net smelter returns royalty on the Riley Brook Property.
- A Shareholders’ Agreement will delineate the operational framework for JV Co and governance structure.
Private Placement Initiatives
In addition to the investments, Fancamp will complete a private placement of Lode Gold Special Warrants, set to convert into common shares following completion of the spin-out, aiming to facilitate additional capital flow for exploration projects.
Moreover, further funds will be acquired through Spin Co’s private placement initiative aimed at ensuring the viability and growth of both companies in the competitive mineral exploration landscape.
Future Prospects
Fancamp Exploration Ltd. maintains a focus on substantial growth and development within the mining sector, targeting strategic mineral properties across several provinces, and expanding its portfolio in high-potential investment opportunities. The company’s vision includes advancing its existing projects and actively seeking new ventures that promote value creation through mineral exploration.
For more information about Fancamp Exploration Ltd., please refer to their official website or contact their investor relations team.
Frequently Asked Questions
What is the main focus of Fancamp Exploration Ltd.?
Fancamp is dedicated to mineral exploration and aims to create value through strategic investments in mineral properties.
What properties are involved in the joint venture with Lode Gold?
The joint venture involves the Riley Brook and McIntyre Brook mineral properties, along with Yukon properties like Golden Culvert and Win.
How much will Fancamp invest in Spin Co?
Fancamp plans to invest $2,500,000 into Spin Co to secure a 19.9% shareholding.
What are the expected exploration activities?
A total of approximately $3.42 million is allocated for exploration activities in New Brunswick and Yukon.
Who can be contacted for more information about Fancamp?
For further inquiries, contact Rajesh Sharma, CEO, Debra Chapman, CFO, or Tara Asfour, Director of Investor Relations at Fancamp.
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