Canadian company Harfang Exploration has exercised its option to acquire a 100% interest in the Egan Gold Property in Ontario.
This was facilitated through a combination of cash and share payments to the property vendors.
In accordance with the option deal and its subsequent amendment from August 2020 and August 2022, Harfang had the right to earn a full interest in the property.
The agreement with the vendors included dividing the final cash payment of C$170,000 ($126,293) into two instalments of C$85,000 each.
Vendors have now consented to accept the final instalment as a combination of C$27,554 in cash and 510,670 common shares of Harfang.
Harfang will complete the cash payment and share issuance upon receiving the necessary approvals, securing a 100% interest in the Egan Property.
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The acquisition is subject to a 2% net smelter return royalty to the vendors.
Egan Gold Property is situated in the prolific Abitibi gold camp and has been a focus of Harfang’s exploration efforts, which have identified several high-priority targets.
The property was initially optioned following the discovery of the E1 Zone, where logging activities uncovered a north-east-trending shear zone with a network of quartz veins within a syenite host.
Harfang president and CEO Rick Breger said: “We are pleased to proceed with the acquisition of a 100% interest in Egan.
“From the beginning, it has delivered solid results from our exploration campaigns with numerous targets to follow up on.
“We are particularly intrigued by the delineation of a large, gold-in-soil anomaly south of the E1 high-grade gold occurrence, adding another high-priority target, as well as the E1 South discovery that returned an altered syenite grab sample assaying 25g/t [grams per tonne] gold.”
In January 2022, Harfang Exploration entered an agreement to acquire all of the issued and outstanding shares of LaSalle Exploration.