Fokus Mining Expands Landholdings with Visible Gold Mines Deal
Key Acquisition Announcement
Fokus Mining Corporation (TSX.V: FKM, OTCQB: FKMCF, FSE: F7E1) is excited to share that it has finalized an asset purchase agreement with Visible Gold Mines Inc. to acquire interest in significant properties located along the Cadillac-Larder Lake Fault. This strategic move allows Fokus to expand its exploration footprint substantially.
Details of the Agreement
Fokus is set to acquire a 100% interest in six properties: Cadillac Break, Lucky Break, Silidor, Stadacona, Wasa Creek, and Wasa East, in addition to a 40% interest in the Capricorn project. The total evaluation for these properties is approximately $3,000,000, which will be settled through various means including cash and common shares of Fokus.
Significance of the Property Locations
The acquisitions encompass around 6,473 hectares which significantly grow Fokus' land holdings in the region from 3,086 hectares to a remarkable 9,559 hectares. These properties remain largely underexplored, providing a promising avenue for exploration and development alongside existing major gold systems. The properties are strategically positioned near the Galloway Project and Agnico Eagle’s Wasamac project.
Potential Exploration and Resource Expansion
The newly acquired properties offer significant exploration upside. The Cadillac Break property surrounds the existing Hendrick deposit, suggesting potential for resource expansion. Fokus’ flagship Galloway Project has a previously recorded NI 43-101 inferred mineral resource of over 1.4 million ounces of gold, with indications that resource estimates may increase at higher gold prices.
Benefits for Shareholders
- Increased Land Package: Focuses on securing additional high-potential properties.
- Resource Accretion: Immediate enhancement of gold resources available to the company.
- Exploration Upside: Multiple properties have historical records indicating potential rich deposits.
- Cost-Effective Expansion: Acquisition uses a combination of cash and stock, preserving capital while strategically growing assets.
CEO Commentary
President and CEO Philippe MacKay stated that "This acquisition is a significant milestone in our growth strategy. We have more than tripled our land position while enhancing our potential for discovering further gold resources. The historical significance of the Cadillac-Larder Lake Fault region further bolsters our strategy."
Future Plans and Outlook
The transaction is set to close on or before a specified date, contingent upon regulatory approval, including the oversight of the TSXV. Fokus Mining Corporation remains committed to advancing its exploration initiatives and enhancing shareholder value through strategic expansions such as this acquisition.
About Fokus Mining Corporation
Fokus Mining Corporation is dedicated to acquiring and exploring high-potential mineral resources, particularly within Quebec's Abitibi region. With its flagship Galloway Project, Fokus emphasizes the need for strategic growth through exploration and development of quality assets.
Frequently Asked Questions
What properties is Fokus acquiring from Visible Gold Mines?
Fokus is acquiring six properties including Cadillac Break, Lucky Break, Silidor, Stadacona, Wasa Creek, and Wasa East, along with a 40% interest in Capricorn.
How much is Fokus spending on this acquisition?
The total consideration for the acquisition is approximately $3,000,000, through a mix of cash and common shares.
Why is this acquisition significant?
This acquisition significantly increases Fokus' land package, positioning the company closer to major gold systems and enhancing its exploration potential.
What is the current status of the transaction?
The transaction is pending regulatory approval and is expected to close on or before a specified date.
What does this mean for Fokus shareholders?
This strategic acquisition is anticipated to increase shareholder value by enhancing resource potential and expanding exploration opportunities.
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