West Mining Corp. [WEST-CSE; WESMF-OTC; 1HL-FSE] said Monday April 12 it has executed agreements to acquire 100% interests in the Kena and Daylight gold-copper properties in southeastern British Columbia. The Kena and adjoining Daylight properties are collectively known as the Kena Project.
West Mining is a mineral exploration company with a focus on acquiring and exploring advanced and prospective early-stage projects. West is focused on its Kena gold project in the Nelson Mining Division of southeastern B.C., its Spanish Mountain West and Junker gold projects in northern B.C., and its Kagoot cobalt project near Bathurst, New Brunswick.
The company’s flagship Kena Project covers 8,000 hectares and is near Nelson, B.C. It hosts a historical resource of 208,000 oz gold in 6.0 million tonnes at 1.08 g/t gold, plus 272,000 oz gold in 8.7 million tonnes at 0.97 g/t gold at a cut-off grade of 0.70 g/t gold.
Although those resource estimates are believed to be reliable, the company is not treating the estimate as a current resource as neither the company nor its qualified person have done sufficient work to classify the historical estimate as a current resource.
The historical estimate is a non-verified estimate prepared prior before the company acquired an interest in the property.
The company recently hired Moose Mountain Technical Services of Cranbrook, British Columbia, for the preparation of an updated NI 43-101-compliant resource estimate for the Kena and Gold Mountain zones at its Kena-Daylight gold and copper property
“When the opportunity as such presented itself allowing West to purchase outright 100% of the Kena and Daylight gold-copper project, the company acted swiftly,” said West Mining President and CEO Nicholas Houghton.
The company struck an asset purchase deal to acquire Apex Resources Inc.’s [APX-TSXV] remaining 20% interest in the project in exchanged for $300,000 in cash and 1.5 million shares. Apex is also granted a 1.0% NSR on the project, which West can repurchase for $500,000 at any time prior to start of commercial production.
In conjunction with the asset purchase agreement with Apex, West Mining has entered into an amended agreement for Boundary Gold and Copper Mining Ltd. as well as Boundary’s wholly-owned subsidiary 1994854 Alberta Ltd. to acquire an 80% stake in the project.
The amended agreement provides that West Mining can complete its acquisition of all of the numbered company’s shares from Boundary in exchange for $800,000 in cash and 7.36 million shares.
West Mining shares declined falling 7.0% or $0.03 cents to 40 cents on volume of 174,500.