TerraX Minerals has purchased the Tom Mine and Sickle properties north of Yellowknife from Altamira Gold Corp.
The gold exploration company announced the purchase in news release yesterday.
The Tom and Sickle projects are adjacent to and within TerraX’s Yellowknife City Gold project (YCGP), and their purchase increases the area of the YCGP from 772 square kilometres to 780 square kilometres.
The Sickle project is completely enclosed by ground controlled by TerraX and has had limited previous drilling. The Tom project was a small historic producing gold mine and was in operation from 1985-1997. When the Tom Mine closed in 1997 the veins were still open at depths below the current mine workings.
As part of the agreement, TerraX will pay Altamira a total of $25,000 cash and 250,000 shares of TerraX and Altamira will retain a 2% NSR royalty. The agreement is subject to the approval of the TSX-V exchange and is expected to close by the end of the month.
Joseph Campbell, the Executive Chairman of the Board of TerraX, says the purchase of the Tom Mine property gives TerraX access to another gold-bearing vein system similar to the past producing Ptarmigan Mine, which TerraX also purchased earlier this year.
“The property is also near paved road access to Yellowknife and high-tension power lines that are connected to the past producing Ptarmigan Gold Mine,” says Campbell in a statement.
“The purchase of the Sickle property gives TerraX an additional 5 kilometers of strike length in the gold bearing Walsh Lake sediments.”
“We are very pleased to have divested these projects to TerraX which adjoin their Yellowknife City gold project,” states Mike Bennett, President & CEO of Altimara, commenting on the agreement.
“Altamira’s focus is on our Brazilian projects in the Alta Floresta gold and copper belt. We are excited to become shareholders of TerraX and wish them the very best of luck in their quest for a significant gold deposit in the NWT”.