THE BOURSE WHISPERER: Southern Crown Resources (ASX: SWR) has signed an exclusive option agreement to explore and acquire a package of projects it considers to ghost prospective multi-metallic targets.
The package is located 500 kilometres west of Anchorage in the South West Tintina gold belt of Alaska.
The Option includes three projects: Luna-Quicksilver, Kisa, and Chilly, and covers 138 square kilometres.
The Tintina gold belt is home to a number of world-class intrusion related gold (IRG) systems including Donlin Creek (45 million ounces at 2.21g/t gold), Pogo (5Moz at 12.45g/t gold), Fort Knox (produced over 5Moz of gold), Livengood (20Moz at 0.55g/t gold) and Shotgun (0.7Moz at 1.02g/t gold).
“Luna-Quicksilver represents an exciting untested IRG system that has all the hallmarks of a world class system such as Donlin Creek,” Southern Crown chairman Rhod Grivas said in the company’s announcement to the Australian Securities Exchange.
“This opportunity provides a near-ready drill target and a deal structure that minimizes dilution of existing shareholders and shares exploration risk with the project vendor.
“Two mineralised stockwork outcrops 1.2 kilometres apart in a system that is over 700 metres wide and striking over five kilometres is an attractive target in this belt.”
Southern Crown has signed the Option with Afranex Gold, an unlisted Australian company founded by Allan Kelly, managing director and co-founder of ASX-listed Doray Minerals (ASX: DRM) who spent time in North America working for Western Mining Corporation in the late 1990’s.
The Option allows Southern Crown to acquire the companies that hold the rights to 100 per cent of the three projects with an expiry date four months after the completion of 1,200m of core drilling or 31 December 2015, whichever occurs first.
Southern Crown has invited Kelly to join the company as technical advisor to provide on-going exploration input.
On exercising the Option, Southern Crown is required to issue 30 million ordinary shares, with the major vendor shareholder group subject to a voluntary 12 month escrow period.
The company has agreed to pay up to $100,000 to Afranex to cover exploration and corporate costs.
Afranex has an option agreement with Gold Crest Mines and Kisa Gold Mines over the Luna, Kisa and Chilly Projects as well as purchase agreements over the Quicksilver Project with Black Peak LLC, a subsidiary of ASX-listed Renaissance Minerals (ASX: RNS) and North Quicksilver Project with North Fork LLC, a subsidiary of North Fork Pty Ltd.
Afranex also has an option to acquire Kisa Inc’s interest in the Luna, Kisa and Chilly projects by paying US$300,000 before 31 December 2015.