G4G Capital acquiring 21 Yukon mineral properties

Shawn Ryan. Photo by Kathrine Moore.

Shawn Ryan. Photo by Kathrine Moore.

G4G Capital Corp. [G4G-TSXV] has signed an option agreement to acquire 21 properties, comprising some 12,301 quartz claims in the White Gold district of the Yukon Terrotory, from Shawn Ryan and Wildwood Exploration Inc. The quartz claims, covering about 249,000 hectares (2,490 km2), are grouped in six project areas covering various prospective geological terrain in the White Gold district. The properties represent all of Ryan’s precious metal interests in the White Gold district that are not in a current joint venture with third parties.

The option is subject to completion of the private placement (see below), and receipt of regulatory and third party approvals, including the approval of the TSX Venture Exchange.

For G4G to exercise the option, the following consideration will be paid to the vendors:

Share consideration of 7 million shares of G4G issuable in two installments, 1 million within two business days of the effective date (as defined below) and 6 million within 18 months of the effective date;

Cash consideration of $3.5-million payable in five installments, $500,000 on the effective date, $500,000 on the first anniversary of the effective date, $500,000 on the second anniversary of the effective date, $1-million on the third anniversary of the effective date and $1-million on the fourth anniversary of the effective date; reimbursement of the vendors’ staking expenses of up to $40,000.

As part of the agreement, G4G will enter into a consulting agreement with Shawn Ryan whereby he will be appointed Chief Technical Adviser of G4G for five years.

In connection with the option, G4G will complete a non-brokered private placement for gross proceeds of $3 million by issuing units at 20 cents per unit. Each unit will consist of one share and one warrant, with each warrant good to acquire one additional share at an exercise price of 25 cents for three years.

Proceeds will be used to partially finance the exercise of the option, to finance the exploration of the properties, and for general corporate purposes. Completion of the private placement is subject to regulatory approval. Up to 9 million units ($1.8-million), may be purchased by insiders of G4G, although exact allocations have not yet been determined.

The properties being acquired range from grassroots targets, where ridge and spur soil geochemical sampling has identified targets for more detailed follow-up exploration, to more advanced exploration targets where grid soil geochemical sampling, mapping, geophysical surveys and very limited drilling campaigns have been conducted. In total over $25-million has been previously spent exploring the 21 properties. The properties will be subject to a 2% net smelter return (NSR)

Shawn Ryan said, “By consolidating all of my interests in the White Gold district, we have created the largest claim package in the area. With the historic work that has been performed and Ground Truth Exploration’s new cost-effective Drone to Drill program, our chances of success have never been greater.”

Filed in: Gold, Resources

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