Blue Jay Gold has entered into a definitive agreement to acquire Whitehorse Gold, a subsidiary of Tincorp Metals, which holds the Skukum Gold Project in Yukon, Canada.
The transaction is expected to be completed in the third quarter of 2025 (Q3 2025), subject to certain conditions and approvals.
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Under the terms of the agreement, Blue Jay will pay Tincorp C$300,000 ($219,016) in cash and/or equity at closing, with an additional C$275,000 due on the one-year anniversary.
Blue Jay Gold CEO Geordie Mark said: “The Blue Jay team is thrilled to be assuming stewardship of the Skukum Au-Ag Project, a large-scale, high potential asset spanning approximately 170km².
“The project already hosts close to one million ounces of gold-equivalent resources and benefits from excellent existing infrastructure, which positions us well to advance it efficiently and responsibly. This acquisition aligns perfectly with our philosophy of conducting greenfields exploration in brownfields environments, similar to our current portfolio of projects in Ontario, where we see real opportunity to unlock value through focused, cost-effective work.”
A C$25,000 deposit was previously made by Blue Jay upon signing a letter of intent.
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By GlobalDataFurthermore, Blue Jay has committed to an incentive payment of $5/oz of gold equivalent identified beyond two million ounces (moz) within five years, as per an updated technical report.
The acquisition also includes an obligation for Blue Jay to manage the reclamation of the project site, which features a 50-man camp, geological facilities, a process plant and exploration roads.
The reclamation is associated with an approximately C$2.93m security demand from the Yukon Government.
Blue Jay must secure capital to meet this demand as part of the transaction conditions.
Tincorp interim CEO Victor Feng said: “This transaction represents an important step forward in Tincorp’s strategy to sharpen our focus on our Bolivian projects and pursue new exploration and acquisition opportunities.
“It also ensures that the Skukum Gold Project is transferred to a steward looking to undertake responsible exploration in the Yukon. At the same time, the transaction allows us to retain potential upside exposure to the project through a prospective equity interest in Blue Jay, a company focused on conducting lower-cost, responsible exploration across its gold projects in Ontario and now the Yukon.”
Blue Jay Gold recently completed a spin-out of Riverside resources and the latter recently announced the successful distribution of Blue Jay Gold shares to its shareholders following a spin-out arrangement effective 22 May 2025.
Shareholders received one Riverside share and one-fifth of a Blue Jay share for each share held.
