The two companies have settled on an “as is, where is” agreement, according to a Dec. 19 press release.
The past-producing silver mine, located about 85 kilometres west of Cobalt, operated for 62 years, from 1910 to 1972. Gowganda formerly produced 40.7 million ounces of silver, grading 22 ounces per ton.
Surface tailings show an National Instrument 43-101 indicated resource of 2.96 million ounces of gold at 47.5 grams per tonne gold from 1.9 million tonnes using a cutoff grade of 10 grams per tonne.
Brixton will issue 1.5 million common shares to Temex for Gowganda, and Temex will retain a three per cent net smelter return royalty. The company can buy down one per cent of the NSR by paying Temex CAD$500,000 at any time prior to production.
“The acquisition of the Gowganda Silver Project reaffirms Brixton's interest in this once famous silver camp,” Brixton chair and CEO Gary R. Thompson said in the release.
“I believe this move into this historic camp provides investors with a unique brownfields silver opportunity in Canada."
Following the acquisition, Brixton will control three past producers of high-grade silver within the silver-cobalt camp: the Langis Mine, the Hudson Bay mine, and the Gowganda Mine.
The exploration plan for the Gowganda project includes historical data compilation and 3D modelling to identify drill targets. In addition, the work will include an assessment of the silver recovery potential from the surface tailings on the property.
The acquisition is expected to be complete by the end of January, 2017.