Strategic Metals options 11 Yukon gold projects to Trifecta
Strategic Metals Ltd. [SMD-TSXV] has granted Trifecta Gold Ltd. [TG-TSXV, TRRFF-OTCQB] the option to earn a 100% interest in 11 projects located in central Yukon’s Tombstone Gold Belt.
The package includes the advanced Mt Hinton gold silver-project next to Hecla Mining’s [HL-NYSE] Keno Hill mine and Banyan Gold Co.’s (BYN-TSXV) AurMac deposit as well as 10 other highly prospective projects. The company said all 11 projects show characteristics of reduced intrusion-related gold systems (RIRGS) like Snowline Gold Corp.’s [SGD-CSE, SNWGF-OTCQB] recent Valley discovery or Victoria Gold Corp.’s [VGCX-TSX] Eagle mine.
Intrusion-related gold systems are characterized by sheeted, auriferous quartz veins, forming the carapace zones of Cretaceous age plutons.
Trifecta advanced on the news, rising 20% or $0.005 to $0.03. The shares trade in a 52-week range of $0.05 and $0.02.
Strategic eased 5.0% or $0.01 to 19 cents. The shares trade in a 52-week range of 39 cents and 16.5 cents.
Under the option agreement, Trifecta can acquire an initial 70% interest in the properties by spending $6 million on exploration by December 31, 2027, and issuing the number of shares that will leave Strategic with a 9.99% stake in Trifecta. Following the exercise of the first option, Strategic will also retain a 1.0% net smelter return royalty stake in the properties.
Trifecta can acquire the remaining 30% interest in the properties by issuing additional Trifecta shares to Strategic equal to 9.99% of the then outstanding shares of Trifecta at any time after the exercise of the first option and prior to March 31, 2028. Following the exercise of the second option, Strategic will retain an additional 1.0% NSR royalty interest. Trifecta can purchase the second royalty via the payment of 1,500 ounces of gold or the cash equivalent to Trifecta.
If Trifecta exercises the first option only, the parties shall form a joint venture to further explore and develop the properties.
Strategic Metals is a project generator with 12 royalty interest, 15 projects under option to others and a portfolio of more than 85 wholly-owned properties. The company has a cash position of over $2 million. It also holds equity stakes in a number of Yukon and Nunavut exploration companies, including GGL Resources Corp. [GGL-TSXV], Rockhaven Resources Ltd. (RK-TSXV), and Honey Badger Silver Ltd. [TUF-TSXV].
The optioned portfolio covers approximately 30,000 hectares of land within the Yukon portion of the Tombstone Gold Belt across 11 properties, namely Mt. Hinton, Rye, Liam, Lois, Leroy, Luke, Leah, Lisa, Husky and Naws.
Mt. Hinton is a road accessible, camp-scale property with over 60 precious metals veins identified to date. Mt. Hinton is a direct extension of the stratigraphy that hosts Heclas’s Keno Hill mine and much of the historical exploration at Mt Hinton focused on those veins. Visible gold has been found in many of the known veins.