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MGX Minerals Inc. (CSE:XMG) is set to acquire a 100% interest in 166 contiguous hectares covering a known high-purity silica prospect in the Golden mining district of southeastern British Columbia. Under the terms of the Acquisition Agreement, MGX will issue 100,000 shares to AMY as well as grant a 0.5% Net Smelter Royalty on any future production.
According to CEO Jared Lazerson, “The high purity nature of the Koot prospect aligns well with the Company’s business model of acquiring high-grade, quarry-style mining projects.”
As quoted in the press release:
Exploration conducted on the Koot Claims by Cominco (now Teck-Cominco) during the 1980’s outlined a mineralized zone spanning approximately 400 meters consisting of high-purity silicon dioxide (SiO2). Whole rock analysis of composite samples in six of seven shallow diamond drill holes returned values ranging between 98.7% and 99.3% SiO2 (Assessment Report 10160). The zone remains open along strike and at depth to the north, east and west. Cominco also conducted decrepitation testing of rock fragments at 1,000 degrees Celsius of rock fragments from the three quartzite outcrops and noted no decrepitation.
The Koot Claims are located in the Golden mining district of southeastern British Columbia, less than four kilometers from the Canadian-Pacific rail line and 2.5 kilometers from Highway 95. The property is accessible by a network of well-maintained logging roads.
“The high purity nature of the Koot prospect aligns well with the Company’s business model of acquiring high-grade, quarry-style mining projects,” stated Company President and CEO Jared Lazerson. “Additionally, the acquisition bolsters the Company’s exposure to the Ferro Silicon market while further strengthening our portfolio of industrial mineral assets.”
In connection with the acquisition, MGX will issue 100,000 shares to AMY as well as grant a 0.5% Net Smelter Royalty (NSR) on any future production. Additionally, the Koot Claims are subject to a 0.5% NSR attributable to the Company’s non-independent Qualified Person Andris Kikauka.
Click here to read the MGX Minerals Inc. (CSE:XMG) press release
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