White Gold has entered a binding purchase agreement to acquire Kinross Gold’s properties located in the White Gold District, Yukon, Canada.
The assets under this acquisition are White Gold, Black Fox, JP Ross, Yellow and Battle properties.
After this acquisition, White Gold is expected to add approximately one million ounces of gold grading between 2.7g/t to 3.19g/t gold on the Golden Saddle area calculated on the basis of the historic estimates of Measured and Indicated Resources on the White Gold Property.
The transaction requires White Gold to issue 17.5 million common shares of the company and an upfront cash payment of C$10m ($7.35m), which will be funded from the proceeds of a non-brokered private placement with Agnico Eagle Mines.
White Gold is also required to pay up to C$15m ($11.03m) in future milestone payments.
The deal will also see Agnico and Kinross each own nearly 19.9% of White Gold.
White Gold chief technical adviser Shawn Ryan said: “The acquisition adds significant exploration potential to our already dominant land position in the White Gold District.
“Our ultimate goal in the Yukon is to leverage our team's track record of successful exploration and discovering mineral resources in order to discover additional gold deposits and this acquisition greatly enhances our prospects."
White Gold is situated about 95km south of Dawson City in Yukon.
It comprises 1,835 claims covering an area of approximately 36,265ha.
Located 70km south of Dawson City, the JP Ross property has 2,251 claims in a 45,600ha area.
The Black Fox, Yellow, and Battle properties are early stage properties where very limited historic exploration was conducted to date.
These three properties collectively have 238 claims within a 4,895ha area.
Upon completion of the transaction, which is subject to closing conditions and regulatory approvals, White Gold will own 19,438 claims across 390,000ha, which is approximately 40% of the White Gold District.