Heritage Mining acquiring Zarn Lake claims, Ontario
Heritage Mining Ltd. [CSE: HML; FRA: Y66] has exercised its option to acquire 40 mining claims in Ontario pursuant to an option agreement dated January 6, 2021, between the company and Paul Riives. The Zarn Lake claims are contiguous with, and form a portion of, the company’s flagship Drayton-Black Lake project.
“We are thrilled to exercise our option to acquire 100% of the Zarn Lake claims. The district has seen significant strategic capital inflow recent years from major players, we are proud to increase our ownership position supporting our interest in developing the district and its immense potential. Drilling on these claims set to recommence mid- to late January 2025, targeting the intersection of two mineralized quartz vein systems in the immediate vicinity of this highest-grade sample on the project, 2,330 [grams per tonne gold]. The Zarn Lake claims also include key technical areas of interest highlighted from Brett Davis, adviser to Heritage Mining, and Dr. Gregg Morrison, adviser to Heritage, from prior technical analysis October and November, 2024,” commented Peter Schloo, president, CEO and director of Heritage.
“This is an important strategic addition to the HML land package, encompassing extensions of previously unrecognized trends that recent prospecting has confirmed as being prospective for gold mineralization,” commented Davis, adviser to Heritage.
To exercise the option, the company paid Riives an additional $70,000 cash, issued to Riives an additional $50,000 of common shares in the capital of the company (833,333 common shares at a deemed price of six cents per common share), and incurred an additional $250,000 in project expenditures between the second and the third anniversary of the option agreement. Riives retains a 2% net smelter returns royalty on the Zarn Lake claims with a buyback of 1% for $1 million and an advanced royalty payment of $1,000 per year after the company commences commercial production on the Zarn Lake claims.
The company is a Canadian mineral exploration company advancing its two high-grade gold-silver-copper projects in Northwestern Ontario. The Drayton-Black Lake and the Contact Bay projects are located near Sioux Lookout in the underexplored Eagle-Wabigoon-Manitou greenstone belt. Both projects benefit from a wealth of historic data, excellent site access and logistical support from the local community. The company is well capitalized, with a tight capital structure.