Trans Canada Gold (TSXV: TTG) this morning announced that they have entered into an option arrangement with that of Sokoman Minerals (TSXV: SIC). The arrangement will see the company earn up to a 100% interest in the Crippleback Lake Gold property in Newfoundland.
The Crippleback Lake Gold property consists of 121 claims that cover a total of 3,025 hectares. Located in proximity to the Trans Canada Highway in north-central Newfoundland, the property covers the northeastern extension of the Valentine Lake fault zone. More specifically the property is between the Valentine Lake gold deposits held by Marathon Gold and Sokoman’s Moosehead Gold project.
In total, the property includes 13 kilometres of strike along the Valentine Lake Structural Zone, and contains gold in lake sediment and till samples. Float samples to date have assayed as high as 1.7 g/t gold, with all previous exploration on the property having been focused on base metals. Exploration permits are currently pending for the property.
“By acquiring this strategically located block of gold claims in Central Newfoundland in this modern-day gold rush, our geological team of gold experts is extremely excited about optioning and forming a strategic alliance with Sokoman Minerals in this option agreement, which will be a great opportunity for both world-class gold teams of exploration geologists to perform exploration work and share drilling knowledge while drilling between Marathon Gold’s Valentine Lake gold deposit and Sokoman’s 100% owned Moosehead Gold project and discovery.”
Tim Coupland, CEO of Trans Canada
The arrangement will see Trans Canada receive the option to acquire up to 100% of the Crippleback Lake property for total consideration of $600,000 in cash and work commitments and 1.25 million shares over a period of four years. Sokoman will retain a 1% NSR royalty on the property, half of which can be purchased by Trans Canada for $1.0 million.
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Trans Canada Gold last traded at $0.25 on the TSX Venture.
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