Goldplay Mining Inc. [AUC-TSXV, AUCCF-OTCQB, 9FY-Frankfurt] has signed an option agreement with Scottie Resources Corp. [SCOT-TSXV] that will enable the junior earn an interest in Scotties’ Golden Triangle properties in British Columbia.
On Friday, Scottie shares rose 6.2% or $0.01 to 17 cents and currently trade in a 52-week range of 25 cents and 15 cents.
The announcement comes after Goldplay said that in order to advance the company’s existing portfolio of projects in Portugal and beyond, it has appointed Christopher Osterman as CEO. The company also named Catalin Kilofliski as Executive Chairman. In that role, he will continue to lead the company’s strategy. Goldplay’s current Chair of the Board, Deepak Malhotra is now Goldplay’s lead independent director.
Goldplay shares were unchanged Friday at $0.05 and currently trade in a 52-week range of 16 cents and $0.05.
Scottie’s property portfolio includes the formerly producing high-grade Scottie gold mine, located on the Granduc Road, 35 kilometres north of Stewart, B.C., and north of Ascot Resources Ltd.’s [AOT-TSXV, OTVF-OTCQX] Premier project, which is in the process of refurbishing its mill in anticipation of production in the first quarter of 2023.
Under the option deal, Goldplay can acquire up to a 3.75% in interest in Scottie’s properties by spending $1.5 million on exploration by December 31, 2022. If the exploration expenses incurred amount to less than $1.5 million, Goldplay’s earned interest in the properties will be reduced proportionally.
Following the exercise of the option, Goldplay will have the right (the put right) to require Scottie to repurchase the interest earned by Goldplay by paying cash, at a price calculated by dividing the total exploration expenditures incurred by Goldplay by 1.7.
When the option is exercised, Scottie will have the right (call right) to repurchase the interest earned by Goldplay by payng cash, at a price calculated by dividing the total exploration expenditures incurred by Goldplay by 1.7.
In the event that the put right or call right is exercised, Scottie may, at its sole discretion, satisfy up to $300,000 of the price for the repurchase of Goldplay’s interest by issuing issuing Scottie shares to Goldplay.
News of the option agreement comes after the company released drilling results from the Blueberry Contact Zone, which is located 2.0 kilometres north and northeast of the Scottie gold mine. Highlights included intercepts of 13.3 g/t gold over 12.5 metres, including 37.5 g/t over 2.5 metres. Drilling this year will aim to test the strike of the zone up to 1.4 kilometres and to a depth in excess of 400 metres.
The Scottie Gold Mine project consists of the Scottie Gold Mine, Bow, Summit Lake and Stock claim groups. The project includes the past-producing Scottie Gold mine, which operated from 1981 to 1985, producing 95,426 ounces of gold from 183,147 tonnes of mineralization.
The Scottie mine was ultimately shut down due to a drop in the gold price combined with high interest rates.