Auteco Earns 70% PC Gold Through Exploration Outlay
First Mining Gold Corp.(TSX: FF) (OTCQX: FFMGF) has confirmed that Auteco Minerals Ltd has completed the Stage 2 earn-in requirements with respect to the Pickle Crow Gold Project located in northwestern Ontario, Canada.
As per the March 2020 earn-in agreement with First Mining, Auteco has incurred $5 million in qualifying exploration expenditures, paid $1 million in cash to First Mining and has granted First Mining a 2% net smelter return (NSR) royalty on Pickle Crow of which 1% can be bought back by Auteco for US$2.5 million.
Auteco, through one of its subsidiaries, has now increased its ownership in PC Gold Inc., the joint venture entity that owns Pickle Crow, to a 70% interest (from 51%). At any time following August 26, 2021, Auteco has a right to acquire a further 10% interest in PC Gold by paying First Mining $3 million in cash to increase its total interest in PC Gold to 80%. First Mining currently owns 125,000,000 shares of Auteco.
“First Mining is very excited about Auteco completing this stage two milestone at Pickle Crow,” First Mining CEO, Dan Wilton, said.
“This milestone formally provides First Mining with a royalty on Pickle Crow and an additional $1 million in cash to enhance our strong balance sheet. Our partnership with Auteco continues to surface value for First Mining shareholders as demonstrated by the success of Auteco’s first phase 45,000 m drilling programme, followed by the commencement of a second phase, 50,000 m drilling program. First Mining looks forward to the ongoing exploration success at Pickle Crow that our partners at Auteco continue to deliver.”
Auteco has a cash balance of A$21.8 million as of June 30, 2021 and is well-funded to execute the 50,000 m drill programme planned for the next 12 months. First Mining’s interest in PC Gold remains free carried until the earlier of the termination of the earn-in agreement or a decision to mine by Auteco.
The Pickle Crow Gold Deposit is a high-grade, shear-hosted, mesothermal Archean lode gold deposit. The deposit occurs primarily within mafic volcanics and banded iron formation (BIF) units in the Pickle Crow assemblage of the Pickle Lake Greenstone belt located in the Uchi Lake Sub-province of the Superior Craton of the Canadian Shield.
Auteco’s development focus is on returning to first principles, completing a new geological review and applying modern exploration technologies in their advancement of the Project. Auteco has a strong focus on discovering and developing new project scale, high-grade, near surface gold resources.
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