Fury Gold Mines Limited (TSX: FURY | NYSE American: FURY) has entered into an agreement with Newmont Corporation whereby Fury will purchase Newmont’s 49.978% interest in Éléonore South for C$3M.
As part of the consolidation, Fury has also agreed to purchase Newmont’s 30M+ shares of Sirios Resources Inc. for C$1.3M. The Sirios shares will be acquired for investment purposes and Fury will evaluate its investment in Sirios on an ongoing basis with respect to any possible additional purchases or dispositions.
“We value the strong relationship with Newmont and are confident that this transaction is a positive outcome for both companies,” commented Tim Clark, CEO of Fury. “Our team has historically ranked the ESJV as one of our more prolific targets for discovery. As such, we are excited to now have 100% ownership as we expect this to provide a clearer pathway for more exploration and potential upside in returns for our investors from this project consolidation and investment in Sirios.”
Completion is subject to certain conditions and is expected to close in either late February or early March of this year. The Éléonore South project is strategically located in an area of prolific gold mineralization with Newmont’s Éléonore Mine to the north and Sirios’ Cheechoo deposit to the east.
Prospecting to date has identified two distinct styles of mineralization within the project, structurally controlled quartz veins hosted within sedimentary rocks like the high-grade mineralization observed at the Éléonore Mine as well as intrusion-related disseminated gold mineralization similar to that seen at the low-grade bulk tonnage Cheechoo deposit with higher grade potential as seen at the JT and Moni prospects on the project.
Numerous gold in-till anomalies remain undrilled throughout the project and will be a focus for Fury. The bulk of the untested gold anomalies are similar in characteristics to the Cheechoo style of mineralization. Several of the noted drill intercepts have not been followed up on and remain open.
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