Exploration and development firm Timberline Resources has reached an agreement with Americas Gold Exploration (AGEI) to purchase ownership interests in two gold-copper mineral properties in Nevada, US.
Both assets are located in the Battle Mountain mining district.
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The acquisition is expected to complement Timberline’s existing Eureka gold project, which is located further south in the Battle Mountain-Eureka gold trend.
The deal will also offer Timberline the right to earn into existing joint venture (JV) agreements with McEwen Mining at the Elder Creek project and Barrick Gold’s subsidiary Lac Minerals (USA) at the Paiute project.
Timberline is set to offer units containing common shares and warrants to AGEI as part of the deal.
Timberline Resources president and CEO Steve Osterberg said: “These projects have the potential for discovery of major deposits of gold and copper within the world-class Battle Mountain mining district.
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By GlobalData“We believe that this acquisition and association with AGEI, McEwen Mining, and Barrick will improve Timberline’s shareholder value and facilitate access to capital as we advance the properties through exploration and development.
“We expect that the acquisition of these property interests will enhance our position as we continue to evaluate financing opportunities, including equity offerings and strategic partnerships.”
A definitive agreement regarding the initiative is expected to be reached next month following the completion of ongoing due diligence, which is expected to be finalised by 27 April.
Timberline will become the operator and manager of both JV projects once the transaction is closed.
Elder Creek comprises two large, outcropping gold-copper porphyry targets and multiple structural gold targets.
The project covers a claim group of approximately 14 square miles.
The acquisition of the Paiute project is slated to grant the company access to a two-square-mile copper-gold porphyry target situated adjacent to Elder Creek.
In addition to multiple untested high-grade gold targets, the Paiute project contains a core area with potential for the discovery of porphyry copper-gold mineralisation.
