Getchell Gold Corp. [GTCH-CSE, GGLDF-OTCQB, GGA1-FWB] said it has received sufficient funds through its ongoing debenture financing to execute the final US$1.6 million earn-in option payment to acquire a 100% interest in the Fondaway and Dixie Comstock gold properties Nevada.
Back in late November, 2023, Getchell said it would undertake a debenture financing to raise a minimum of $2.5 million and a maximum of $5 million.
The company said it would used the proceeds to pay the final US$1.6 million payment owed to Canagold Resources Ltd. [CCM-TSX, CRCUF-OTCQB, CANA-FRA] to complete the acquisition of the Fondaway Canyon project in Nevada under the terms of an option agreement. Fondaway Canyon is one of two projects that the company gained an option to acquire three years ago from Canagold, a company that was previously known as Canarc Resources. The other was the Dixie Comstock property, which is also located in Churchill County, Nevada.
Fondaway hosts an inferred resource of 1.5 million ounces of gold and an indicated resource of 550,800 ounces.
Getchell has the option to acquire 100% of Fondaway Canyon and Dixie Comstock by paying Canagold US$2 million in cash and US$2 million in shares over 4.0 years. Work commitments of US$1.45 million over four years have been fully satisfied.
In the preceding three anniversary payments, the company has paid US$400,000 in cash and US$1 million in shares, with the outstanding balance, required to complete the acquisition, of US$1.6 million in cash and US$1 million in company shares due on or before the fourth anniversary date.
“Completing the acquisition of the Fondaway Canyon gold project will undoubtably be a milestone event, marking a key inflection point in the trajectory of the company,’’ said Bill Wagener, Getchell’s Chairman and CEO. “A 100% acquisition of a large developing open-ended at-surface gold deposit in Nevada will deliver a major impetus for the company going into the new year, especially as we head into a highly supportive and burgeoning gold market.’’
Getchell shares were unchanged at 16.5 cents and trade in a 52-week range of 45 cents and $0.085.
The company said the debenture financing, as announced on November 27, 2023, remains ongoing and open for subscription to maximum proceeds of $5.0 million. Proceeds received in excess of US$1.6 million will be used to conduct further exploration work on the Fondaway Canyon gold project and general working capital.
Fondaway Canyon is an advanced stage gold property. The land package contains 170 unpatented lode claims and has a history of previous surface exploration and mining in the late 1980s and early 1990.
The Dixie Comstock property is situated 17 kilometres northeast of Fondaway Canyon on the eastern flank of the Stillwater Range.
The property hosts a low-sulfidation, epithermal gold system localized along a moderately dipping range-front normal fault.
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