Golden Predator Mining Corp. is selling its 3 Aces gold project in southeast Yukon to Seabridge Gold Corp.
Golden Predator and Seabridge Gold made the announcement in press releases March 30.
The 316-square-kilometre project, located off Nahanni Range Road near the border with the Northwest Territories, sits on several promising gold deposits, believed to be among the richest in the world.
Seabridge Gold will be giving Golden Predator 300,000 common shares as well as paying $263,000 to cover already-incurred project costs.
The deal also secures Golden Predator a 0.5 per cent net smelter return royalty on the project, and up to $2.25 million in future potential payments — Seabridge Gold must pay $1 million upon confirming the presence of 2.5 million ounces of gold on the 3 Aces property and another $1.25 million on the confirmation of five million ounces.
Golden Predator’s CEO Janet Lee-Sheriff said in her company’s press release that the deal will allow Golden Predator to focus its efforts entirely on its other main project in the Yukon — the Brewery Creek mine, a more developed property located about 55 kilometres east of Dawson City and which Golden Predator has been trying to reopen.
Lee-Sheriff added that Golden Predator was looking forward to being a shareholder in Seabridge Gold.
“With this world class gold endowment in a rising gold market, we believe the shares have excellent upside potential,” Lee-Sheriff said in the release. “Our involvement with 3 Aces will continue as a royalty holder and we look forward to assisting Seabridge in the transition to their team.”
In a separate press release, Seabridge Gold chairman and CEO Rudi Fronk called 3 Aces a “worthy addition” to the company’s existing properties in British Columbia, Nevada and the Northwest Territories.
“Golden Predator has done an excellent job of demonstrating the exploration potential at 3 Aces, confirming the project’s positive metallurgy and establishing excellent relationships with local First Nations and communities,” Fronk said. “… Our exploration team is keen to get going on 3 Aces, beginning with a review of the extensive data generated by Golden Predator.”
Contact Jackie Hong at jackie.hong@yukon-news.com