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Ximen Mining strikes option royalty deal with Gungnir Resources on former producing British Columbia gold mine

The Kenville mine near Nelson was first discovered in 1888 and mined intermittently until 1954

A gold pour
Kenville was the first underground lode gold mine in British Columbia

Ximen Mining Corp (CVE:XIM) (OTCMKTS:XXMMF) is set to acquire an option from Gungnir Resources Inc (OTCMKTS:ASWRF) to acquire a 4% gross metal royalty over the Kenville gold mine in British Columbia.

The Kenville mine near Nelson was first discovered in 1888 and mined intermittently until 1954, during which it produced over 2,000kg of gold and 861kg of silver.

READ: Ximen Mining eyeing busy year of exploration at its British Columbia properties

It was the first underground lode gold mine in British Columbia, and was once the largest producer in the Nelson mining camp, the firm said.

Ximen has now acquired an option, exercisable at its sole discretion, to purchase all of Gungnir's remaining interest in its 4% royalty over the Kenville gold mine for a total consideration of $1.7 million.

To exercise the option, Ximen will pay $500,000 in cash, currently held in escrow, which will be released to Gungnir upon approval of the venture exchange due on or before June 15 this year, $200,000 worth of Ximen shares, and $1 million in cash to be paid on or before October 31 this year.

A total of $3 million remains payable under the terms of the Gungnir royalty.

Today's news comes after the deal earlier this month (April), in which the group struck an option agreement with Don Althen, an arm’s length individual to the company, which enabled Ximen to buy all of Althen’s interest in the Kenville property.

Ximen will pay Althen a total of 1.4 million shares and around nearly $1.7 million in cash and debt settlements.

Shares of Ximen were unchanged in Toronto at $0.70.

Contact Giles at [email protected]

Follow him on Twitter @Gile74

Quick facts: Ximen Mining Corp

Price: 0.36 CAD

TSX-V:XIM
Market: TSX-V
Market Cap: $12.6 m
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on 07/04/2019

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