Gold exploration company Xmet has inked a deal with Brionor Resources to purchase 24 contiguous mineral claims located in the Canadian province of Quebec.
The company has agreed to issue 20.6 million of its common shares to Brionor for 100% ownership of the Pitt Gold Project located adjacent to Xmet's flagship Duquesne-Ottoman project, which hosts a compliant resource of 4.17 million tonnes at 6.36 grams per tonne uncut.
The completion of the transaction will increase Xmet's gold resource to 953,000 inferred and 156,000 indicated Au ounces.
Xmet Chairman and CEO Alexander Stewart said the company sees a good opportunity to consolidate the Duparquet region's gold resources.
"We have received numerous enquiries from shareholders about our strategy to accelerate our option payments on the Duquesne-Ottoman asset, and they can now see that in order for this consolidation strategy to work we needed to own our resource to gain a foothold and grow from there."
Completion of the transaction is subject to regulatory conditions and approvals including, but not limited to, the exercise of Xmet's option to purchase a 75% interest in the Duquesne-Ottoman project.