Anconia Resources has exercised its option to secure a 100% ownership interest in the Grenfell Gold property in Kirkland Lake, Ontario, Canada.
Currently, Anconia holds 60% interest in this property through an earn-in option agreement executed in 2014.
Under the transaction, Anconia will issue five million common shares to Cadillac Ventures Holdings to purchase the remaining 40% interest in the property. Issued shares will be subject to a hold period of four months and one day from the date of issuance.
Cadillac is also entitled to a 2% net smelter returns royalty on the property.
Anconia can buy 1% of this net smelter returns royalty any time up to two years by paying $1m after the start of commercial production.
The transaction is subject to TSX Venture Exchange approval.
The Grenfell Gold property comprises 16 patented mining claims and two staked claims, covering 3.8km² in the Kirkland Lake gold mining district.
The property is nearly 5km from the currently producing Macassa Mine.
In 1917, gold was discovered in the property following which an exploration shaft was sunk up to 25ft.
The property was acquired by Four Nations Reserve Mining Company in 1926.
Between 1926 and 1928 the shaft was extended to 536ft with levels being established at 125ft, 250ft, 375ft, and 500ft.
Nearly 2,500ft of lateral development was conducted during this period.
The underground workings of the mine are not known.
In the property, ten vein systems have been identified at surface, with two of these trenched by Four Nations Consolidated Gold Mines in 1934. At this time, the mine was reported to carry gold averaging 8.57g/t across 2.38m for a length of 61m.
In 2014, Anconia sampled 7.81g/t Au over 7.55m from the Allen Veins, situated close to the Sylvanite Faul.
The company also reported that grab samples from the Allen Veins area have yielded results up to 19.0g/t Au.