Canada-based Kivalliq Energy has acquired a land position in a greenstone-iron formation gold belt in Nunavut.
The land package includes a mineral exploration agreement (MEA) with Nunavut Tunngavik (NT), the acquisition of 15 prospecting permits, and an options agreement with Commander Resources.
The acquired land position is spread over an area of 408,981.6ha and covers160 km of the Foxe Fold Belt on central Baffin Island.
Kivalliq Energy CEO Jim Paterson said: “With the acquisition of the Baffin Gold project in Nunavut Territory, we have strengthened our relationship with NT and we now hold an entire district with proven gold potential.
“Our team will benefit greatly from the significant exploration expenditures from previous operators, which generated extremely high-grade gold numbers at exploration targets that also exhibited potential for significant size and scale.”
The company noted that the attributes of Baffin Gold project such as low-entry cost and high-potential for discovery and expansion of known gold zones make this acquisition highly valuable for the shareholders of Kivalliq.
The Baffin Gold project hosts 15 prospecting permits, six crown mineral claims and three Inuit-owned land parcels subject to MEA’s with NT.
Kivalliq Energy has acquired an option to earn 100% of Commander’s Baffin Gold Property which comprises six mineral claims covering 5,948ha and a recently signed MEA with NT on two blocks within Inuit-owned lands covering 8,105ha.
Under the option agreement, Kivalliq Energy will make cash payment of C$10,000 ($7,322.47) to Commander, and it will give a total of 500,000 shares to Commander within 12 months.
The agreement provides a 0.25% to 0.5% NSR royalty on Commander’s Baffin Gold Property optioned lands to it.
In addition, it grants Commander a 0.25% NSR royalty on Kivalliq’s Baffin mineral tenures adjacent to Commander’s Baffin Gold Property optioned lands.
The MEA provides NT with cash payments worth $1m and $5.5m upon demonstrating NI 43-101 compliant measured resources of onr million and five million ounces gold respectively.