KO Gold acquires two exploration permits, New Zealand
KO Gold Inc. [CSE-KOG] has entered into an arm’s-length exploration permit acquisition agreement dated February 15, 2024, with NewPeak Metals Ltd. [ASX-NPM] and NewPeak NZ Ltd. and Neil Stuart, pursuant to which the company has acquired two exploration permits (EP) located in the Otago gold district of New Zealand.
The newly acquired exploration permits are Raggedy Range EP 60733 and Garibaldi EP 60677, which combined are approximately 92 km2 in size and located between Santana Minerals’ advanced resource-stage Bendigo-Ophir Gold Project (Rise and Shine Shear Zone – RSSZ) and OceanaGold Corp.’s active Macraes gold mine (Hyde-Macraes Shear Zone – HMSZ). Both exploration permits were granted for a 5-year term and are highly prospective for gold based on historical exploration work and alluvial gold workings in the area.
With the addition of these exploration permits, KO Gold now has eight 100%-owned prospecting and exploration permits within the Otago Gold District for a combined land package of approximately 1,064 km2. KO Gold has also submitted an EP application over the Carrick Goldfield north of its Carrick prospecting permit, with permit approval still pending by New Zealand Petroleum and Minerals (NZP&M).
As consideration for the property, the company will issue to the recipient and the vendors an aggregate of 595,238 common shares in the capital of the company at a deemed issuance price of $0.42 per common Share; issue to the recipient and the vendors such number of common shares having a value of $125,000 on or before February 15, 2025 (the Second Tranche); and issue to the recipient and the vendors such number of Common Shares having a value of $125,000 on or before February 15, 2026 (the Third Tranche). The common shares issued in the Second Tranche and the Third Tranche shall be issued at the Market on the date of issuance.
Under the policies of the Canadian Securities Exchange (CSE), the acquisition and the issuance of the common shares remains subject to receipt of approvals, including the approval of the CSE.
Completion of the sale and purchase of the property is also subject to and conditional upon NZP&M and the Minister approving the transfer of the Property from the Vendors to the Purchaser in accordance with the New Zealand Crown Minerals Act.
KO Gold’s strategy is to acquire and explore highly prospective gold properties within the Otago Gold District in New Zealand. KO Gold has eight 100%-owned prospecting and exploration permits within the Otago Gold District, which includes the Smylers Gold Project for a combined land package of approximately 1,064 km2. The Smylers Gold Project is an advanced exploration project located adjacent to OceanaGold’s active Macraes Gold Mine. The Smylers Gold Project has the potential to host a major gold deposit and has seen significant investments in exploration and drilling over the past few years including over C$1M spent by KO Gold on exploration including reverse circulation and diamond drilling.