A junior miner whose stocks sell for pennies is banking on gold near Flin Flon-Snow Lake and diamonds near Deschambault Lake to reverse its fortunes.
Wildcat Exploration has entered into non-binding letters of intent to buy five gold properties in the Flin Flon-Snow Lake area along with full or partial interests in several northern Saskatchewan diamond properties.
The gold properties, currently owned by Flin Flon-based Copper Reef Mining Corp., total over 4,700 hectares. Wildcat is to acquire a 100 per cent interest in each property.
Consideration for the gold properties will be $200,000 to be satisfied by a non-interest bearing demand note payable to Copper Reef, secured by the properties.
As for the diamond properties, Wildcat’s working interests will range from 85 to 100 per cent on specific sites.
The proposed diamond acquisitions include a 100 per cent interest in properties totalling nearly 2,300 hectares in the Pikoo exploration area near Deschambault Lake. Those properties are currently owned by Copper Reef.
Wildcat also plans to acquire an 85 per cent interest in an additional Pikoo area property totalling over 41,500 hectares, comprised of an 80 per cent interest from Strike Diamond Corp. and a five per cent interest from Kalt Industries Ltd.
Wildcat plans to further acquire a 100 per cent interest in two Pikoo area properties totalling over 11,800 hectares from Kalt Industries.
The Pikoo property package is comprised of more than 55,000 hectares, with the major portion located contiguous to the southeastern part of the highly touted Pikoo Project owned by North Arrow Minerals and Stornoway Diamond Corp.
In 2013, North Arrow announced the discovery of two distinct kimberlite indicator mineral trains in the area. Follow-up drilling returned 745 diamonds larger than 0.106 mm, including 23 diamonds larger than 0.85 mm.
More recently, earlier this spring, North Arrow announced the discovery of three new kimberlite bodies within its Pikoo property.
Wildcat also plans to acquire from Copper Reef an 85 per cent interest in diamond properties totalling over 3,500 hectares in the Fort a la Corne area of northern Saskatchewan.
As consideration for the diamond properties, Wildcat will, subject to regulatory approval, issue 5.5 million common shares to Copper Reef, 3.5 million common shares to Strike Diamond and two million common shares to Kalt Industries.
Wildcat plans to complete a private placement of units to raise up to $400,000 for exploration of its properties and for general corporate purposes.
Exploration in 2015 is expected to focus primarily on the Pikoo area properties.
In a news release, the Winnipeg-based Wildcat said the purpose of the acquisitions is to focus itself “mainly as a diamond and gold exploration company.”
Wildcat and Copper Reef intend to share administrative and logistical facilities to support Wildcat’s operations from Copper Reef’s Flin Flon office.
The terms of the letters of intent contemplate that the parties will enter into definitive agreements, subject to applicable regulatory and board approvals, on or about Sunday, May 31, or another date as the parties agree.
Neither the TSX Venture Exchange nor its regulation service provider accepts responsibility for the adequacy or accuracy of information supplied by Wildcat.
