Canadian mineral exploration company Platinex (PTX) has signed a joint venture (JV) agreement with Fancamp Exploration (FNC) to advance gold mineral properties owned by two firms in Ontario.
As part of the agreement, Fancamp’s Heenan Mallard and Dorothy properties and Platinex’s Shining Tree property will be transferred to South Timmins Mining, a wholly owned subsidiary of Platinex.
Located in the Shining Tree District of Ontario, the district-scale Shining Tree gold mineral properties comprise 1,138 mining claims and one mining lease.
Situated in the Swayze Greenstone Gold Belt adjacent to the Côté Gold Deposit in northern Ontario, the Heenan Mallard property comprises 296 mining claims.
Upon completion of the deal, Goldco will be 25% owned by Fancamp while Platinex will own the remaining 75% stake.
A shareholders’ agreement will also be signed by Fancamp and Platinex pertaining to the operations of Goldco.
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Platinex will also undertake a non-brokered private placement of flow-through units, as well as non-flow-through units.
Under Platinex’s private placement of non-flow-through units, Fancamp plans to subscribe for 9.5% of the issued and outstanding shares of Platinex.
Platinex CEO and president Greg Ferron said: “The transaction creates a stronger gold-focused growth vehicle in a world-class Ontario gold camp and brings in a strong joint venture partner, Fancamp, with access to capital and technical expertise, allowing us to accelerate exploration at the Shining Tree Gold Project.”
Fancamp Exploration president and CEO Rajesh Sharma said: “Fancamp is pleased to join hands with Platinex by combining their respective properties in the SW Abitibi Greenstone Belt, Canada’s largest gold-producing region.
“This transaction is a continuation of Fancamp’s strategic process of creating value from its vast portfolio of mineral properties by either optioning out, entering a joint venture or monetising its assets. This joint venture provides an opportunity for scale and a potential for building a future mine in a highly prospective gold district.”