TORONTO (miningweekly.com) – TSX-V-listed junior gold explorer Secova Metals has signed an agreement with TSX-listed Globex Mining Enterprises to acquire a full interest in 69 claims of property known as ‘The Chenier Claims’, which are located next to the company's Duvay property holdings.
Vancouver-based Secova advised Thursday that the acquisition would result in it having one contiguous parcel of land comprising more than 7 065 ha in the prolific gold region of the Abitibi belt, in Quebec. Once completed, the land acquisition would increase the size of Secova's project by two-thirds. Critically, it would tie together all of Secova's claims into one complete package.
"This acquisition clearly demonstrates Secova's plans to become one of the premier junior gold companies in the Abitibi gold belt of Quebec. Work on our Duvay claims is progressing well and the acquisition of this new ground gives us a significant footprint and the opportunity to develop all the gold resources in the area without concern for extending deposits onto neighbouring claim owners,” stated Secova CEO Brad Kitchen.
The 69 acquired claims added 2 793 ha to the company’s land-holdings and included the Grenadier West gold showing, which could be geologically related to Duvay's gold structures. Grenadier West was located about 1 km south-east of the original Duvay discovery. The Chenier Claims also included two claims north of the original Duvay discovery, where some of Duvay's gold-bearing structures continued.
According to Secova, the Duvay property was accessible by paved highway (Route 395) and located 17 km from the centre of the town of Amos, Quebec, and less than a one-hour drive from Val d'Or. The property was serviced with both power and a telephone line for Internet coverage and had a large, all-season building that served as both a core shack and housed a small gravity mill.
The new claims were acquired from Globex for C$100 000 in cash, or cash equivalent, and one-million shares of the company, subject to a regulatory hold of four months and one day, upon TSX Venture Exchange approval. The claims also held a 1.8% net smelter return, which could be bought back at any time for $350 000, and a 1.5% gross metal royalty, for which Secova had the right of first refusal to buy.