StrikePoint Signs Definitive Agreement to Purchase IDM's Yukon Portfolio
VANCOUVER, BRITISH COLUMBIA--(Marketwired - Jan 19, 2017) - StrikePoint Gold (TSX VENTURE:SKP) ("StrikePoint" or the Company) is pleased to announce that it has entered into a definitive agreement with IDM Mining Ltd. (TSX VENTURE:IDM) ("IDM") to purchase a portfolio of properties located in the Yukon.
"This marks the beginning of a new era for StrikePoint Gold in Canada's best mining jurisdiction. With this acquisition of 26 properties, StrikePoint is armed with an extensive database of rock and soil samples, geophysics, geological mapping and drilling results totaling more than $25 Million. We eagerly await the start of our 2017 exploration season and look forward to exploring our drill ready targets," Shawn Khunkhun, CEO of StrikePoint Gold comments.
| Terms of the Transaction: | |
| The purchase price for the Properties will be $4,200,000 paid as follows: $150,000 in cash and 10,500,000 common shares of the Company. | |
| StrikePoint will incur a minimum of $1,500,000 in exploration expenditures on the Yukon Properties by December 31, 2017. | |
| StrikePoint will appoint two of IDM's designated representatives to its Board of Directors at closing. | |
| IDM has been granted an Equity Participation Right, allowing IDM to maintain its Pro-Rata Interest. | |
| IDM has a Right of First Refusal for two years on the sale of any of the Yukon properties. | |
The closing of the transaction is subject to various conditions including regulatory approvals, receipt of third party consents and the Company obtaining shareholder approval as the transaction will result in the creation of a new control block being held by IDM. Closing is to occur on or before February 28, 2017.
Yukon Properties
The Yukon portfolio consists of 14,037 claims covering 26 properties in 46 claim groups totaling 282,000 hectares (the "Properties"). The Properties cover multiple tectonic and metallogenic environments as well as a variety of mineral deposit styles common in Yukon. The Properties were previously held by Ryan Gold Corp. ("Ryan Gold") and its subsidiaries, and received significant exploration work, with approximately $25 million (as disclosed in Ryan Gold's 2014 year end MD&A) in expenditures incurred. The Properties have limited holding costs. Previous work by Ryan Gold included significant exploration drill programs on two of the Properties, with tens of thousands of rock and soil samples collected during grass-roots exploration programs in several districts throughout Yukon. Additionally, geophysical surveys and geologic mapping programs have outlined many anomalous areas that have not received follow-up work.
Maps, photos and descriptions of the extensive portfolio are available on the company's website www.strikepointgold.com
Andy Randell, PGeo, of SGDS Hive, has acted as the qualified person under National Instrument 43-101 and has reviewed and approved the content of this news release.
ON BEHALF OF THE BOARD of STRIKEPOINT GOLD
Shawn Khunkhun, CEO and Director
Contact
StrikePoint Gold
Shawn Khunkhun
CEO and Director
604-602-1440
sk@strikepointgold.com
www.strikepointgold.com