A Saskatoon precious metal explorer is making its mark in the Timmins gold camp.
GFG Resources announced it has entered into a series of agreements with Rapier Gold, Probe Metals and Osisko Mining to assemble a 700-square-kilometre piece of prospective gold property, west of Timmins.
In separate deals, GFG will acquire all of the outstanding common shares of Rapier, and through individual property purchase agreements will pick up the West Porcupine Property from Probe and the Swayze Project from Osisko.
In addition, GFG announced a non-brokered private placement to raise up to $7 million in financing, part of earmarked for an aggressive drill program in the Timmins area in 2018.
The company believes the West Timmins belt is a highly prospective area with good brownfield and greenfield potential.
Rapier’s Pen Gold Project is 75 kilometres southwest of Timmins and is comprised of a 19,333-hectare land package.
The property straddles Highway 101 and is located on a line between Goldcorp’s Borden Gold Project near Chapleau and Tahoe Resources 144 Project.
In the Probe agreement, GFG acquires the property in exchange for the issuance of 6,477,883 GFG shares valued at $3.5 million.
The 245-square-kilometre West Porcupine Property is 50 kilometres southwest of Timmins.
The Swayze Property covers 120-square-kilometres and is 40 kilometres from Borden Lake. GFG acquires the property from Osisko is exchange for 1,110,494 GFG shares, worth $600,000.
The company expects to close the property acquisitions on Dec. 21. The Rapier acquisition is expected to occur in mid-February after a shareholders vote.
Company president Brian Skanderbeg said in a Dec. 11 news release that he was excited to be in “one of the best mining camps in the world.”
“This area of the West Timmins gold belt has all the geological hallmarks that have contributed to over 70 million ounces of historic gold production in the Timmins mining camp along with several large deposits in the southern Swayze district.
“These transactions perfectly complement our technical skill set and our strategy to aggressively explore district-scale gold projects in tier one mining jurisdictions in North America.”
GFG Resources appears to be adept at putting together sizeable exploration land packages.
The company controls a large gold exploration play in central Wyoming on the east side of the Rocky Mountains. Its Rattlesnake Hills Gold Property is 100 kilometres southwest of Casper and consists of approximately 33,500 acres.