Stakeholder Gold (TSX-V:SRC, StockForum), a Toronto-based gold exploration firm operating in the White Gold District of Yukon, announced today that the company had signed a letter of intent with Cogonov for Stakeholder to obtain the right of earning a 51% interest in the Londonderry Iron-Oxide-Copper-Gold (“IOGC”) project.
According to the news release, in order to fulfill obligations set out in the LOI, the company will make certain expenditures and work commitments on the project, giving it the right of first refusal on the remaining 49% interest in the project.
The release went on to note, “The Londonderry claims cover select Iron-Oxide-Copper-Gold (IOCG) exploration targets identified as high priority targets during previous gravity survey work conducted by Minotaur Exploration Ltd. of Australia. This agreement follows the earlier agreement of March 31, 2014, in which the Stakeholder announced that it had completed a property option agreement with Cogonov Inc. for a 51% interest in the Bass River Iron-Oxide-Copper-Gold (IOCG) project.”
Terms of the LOI included the issuance of $100,000 in common shares of Stakeholder to Cogonov, the incurring of at least $600,000 in expenditures on Londonderry over a period of six months from option execution and additional expenditures of $2.0 million (including the initial $600K) over a period of two years after the option execution.
The transaction will considered a related party transaction and is still subject to regulatory approval. The company will make a further release once the formal agreement has been signed.
Stakeholder CEO, Chris Berlet, commented, “Londonderry is the second high priority IOCG target property identified by Minotaur on the Cobequid Chedabucto Fault Zone in Nova Scotia. Chalcopyrite, iron oxides, barite and a suite of other indicator minerals are suggestive of IOCG potential. Significant gravity anomalies detected in earlier survey work provide targets for drill testing.”
He then concluded, “We are excited about setting out to test these advanced exploration targets for economic deposit potential.”
Stakeholder Gold was in the news recently when the company finalized its option over the Bass River IOCG project located in Nova Scotia.
Shares dipped 8.51% on the news to $0.215 per share.
Currently there are 55.8m outstanding shares with a market cap of $12.0 million.