Through the acquisition, Golden Dawn will gain interest in BGP’s Lone Star Property subject to a 2.5% net smelter return (NSR). The transaction involves $200,000 in cash and $200,000 in common shares.
Located contiguous to Golden Dawn’s Greenwood Precious Metals project, the 234ha Lone Star copper-gold property hosts a series of lode claims and private mineral claims in northern Washington State.
In addition, it is located 17km south of Golden Dawn’s processing facility and lies adjacent to the southern boundary of the company’s Lexington Property.
The geology and accompanying gold-copper mineralisation on the Lexington Property extends onto the Lone Star property, forming a 3km-long prospective exploration trend of gold-copper mines and prospects, including Lexington-Grenoble, Lexington, No 7 and Lone Star Mines.
Copper-gold zones at Lone Star are composed of sheeted and stockwork pyrite-chalcopyrite veins, veinlets and disseminations carrying gold.
According to an estimate in 2007, the inferred resources at the property were identified to be 682,000t, while the indicated resource stood at 63,000t.
Completion of the transaction is subject to regulatory approval.
Advanced Mineral Technology currently owns 100% of the issued and outstanding common shares of BGP Resources.
In addition to the agreement, Golden Dawn closed the private placement process over two tranches, raising $1.76m, to be spent on surface and underground drilling programme on the Greenwood Precious Metals project.
Image: Golden Dawn Minerals Greenwood projects map. Photo: courtesy of Golden Dawn Minerals Inc.