Ximen Mining Corp. [XIM-TSXV; XXMMF-OTCQB; 1XM-FSE] said Thursday May 3 that it has entered into three related arm’s length agreements to acquire 18.5 million shares of a private B.C. numbered company (099537) which holds an option to acquire the Kenville gold mine near Nelson, southern British Columbia.
“The Kenville Gold Mine has played a major role in the rich history of B.C. gold mining,” said Ximen Mining CEO Christopher Anderson.
“It was the first underground lode gold mine in British Columbia and was once the largest producer in the Nelson Mining Camp,” he said. “There have been multiple new targets and veins discovered in the last several years and Ximen is looking forward to the potential opportunity that exists ahead.”
Discovered and staked in 1888, Kenville was mined intermittently until 1954, generating recorded production of 2,029 kilograms of gold, 861 kilograms of silver, 23.5 tonnes of lead, 15 tonnes of zinc, 1.6 tonnes of copper and 37 kilograms of cadmium from 181,395 tonnes processed.
The property is located 8 km west of Nelson and is accessible by paved road. It is also connected to the power grid. The existing infrastructure includes mining equipment, offices, mechanic shop, core storage and accommodation.
The mine deposit consists of multiple, gold-silver quartz veins hosted by diorite. Between 2007 and 2008, 13,000 metres of diamond drilling was completed. The target was previously untested areas southwest of the historic mine. Detailed sampling was conducted within the mine on the 257 level.
There are six levels within the mine footprint. But only the 257 remains open and accessible.
Based on the mine sampling and drill hole information available at the time, new zones of gold mineralization were identified. According to a 2009 estimate, the project contains a measured and indicated resource of 16,289 ounces of gold. On top of that is an inferred resource of 356,949 ounces of gold.
Ximen has said it considers the historic mineral resource estimate to be relevant and reliable. It also said a significant amount of diamond drilling was conducted between 2009 and 2012 (following the resource estimate). At least four new veins were identified with potential strike lengths of over 700 metres.
In addition to the historic gold mine, elsewhere on the property, historic soil geochemical surveys and results of scout drilling have indicated the potential for porphyry-type copper-molybdenum-silver-gold mineralization.
Meanwhile, on Thursday, Ximen said the ‘target’ shares will add to the company’s contemplated share acquisition announced on April 8, 2019. In that release, Ximen said it had entered into an agreement with Don Althen, (an individual who Ximen said is arm’s length to the company), under which Ximen said it had acquired an option to purchase all of Althen’s interest in:
- A promissory note issued by 0995238 B.C. Ltd. to Althen dated August, 10, 2017, in the amount of $780,000 plus interest.
- A promissory note issued by 0995238 to Althen dated May 29, 2018 in the amount of $1 million plus interest convertible into common shares in the capital of 0995237 at a deemed price of $0.02 per common shares.
- Certain mining equipment located in Del Bonita, Alberta.
- And 5.3 million common shares of 0995237 (the shares and collectively with the first and second promissory notes and mining equipment.
The principal asset of 0995237 is the option to acquire the Kenville Gold mine.
In consideration for the target shares, being valued at $659,558, the company proposes to issue 942,226 shares at a deemed issue price of 70 cents per share. The consideration shares will be subject to a four-month, plus one day, hold period running from the date on which they are issued. The acquisition is expected to be completed by May 30, 2019.
On Thursday, Ximen shares advanced 1.01% or $0.005 to 50 cents. The shares trade in a 52-week range of 13.5 cents and 86 cents.
Ximen owns 100% interest in all three of its B.C. precious metal projects. They include the Gold Drop and Brett gold projects. Ximen also owns the Treasure Mountain Silver Project, which is adjacent to the past-producing Huldra Silver Mine near Hope, B.C.
News of the Kenville agreement comes after Ximen recently picked up additional ground near Greenwood, British Columbia.
The company said it has acquired over 12,900 hectares of land that surrounds the Gold Drop Property which Ximen has optioned to GGX Gold Corp. [GGX-TSXV; GGXXF-OTC; 3SR2-FSE]. The property also adjoins a large swath of land to the south and east that is being explored by Kinross Gold Corp. [K-TSX; KGC-NYSE].
Ximen said it acquired the land package, (consisting of 17 mineral tenures and known as the Providence mineral claim) by means of a direct purchase and additional staking.