GGX Gold Corp (CVE:GGX) (OTCMKTS:GGXXF) told investors it now owns 100% of its Gold Drop property in British Columbia, having made a final option payment to Ximen Mining Corp (CVE:XIM) and also revealed it had closed a placing to raise C$103,500.
The property lies in one of the most prolific mining camps in Canada - the Greenwood camp -which has generated 1.4 million ounces of gold, 10 million ounces silver and 0.7 billion pounds of copper.
"We are extremely excited to have completed the option payments and expenditures to acquire a 100% interest in the Gold Drop Property. It is an important milestone for GGX Gold as exploration work to date has significantly advanced the potential of the project. We look forward to aggressively continuing our exploration program," said Barry Brown, CEO at GGX Gold.
GGX paid Ximen a final payment of 600,000 shares valued at C$150,000 and a C$100,000 in cash, which along with meeting the required exploration expenditures completed its obligations to earn a 100% interest.
Ximen though will hold onto a 2.5% net smelter return royalty (NSR) which GGX can buy down 1% of by paying C$1 million.
Upon completion of the option requirements, Ximen will have the right for nine months to form a joint venture by paying GGX an amount of money equal to 30% of the total amount expended on the property. If it exercises this, then GGX and Ximen will enter into a joint venture for the exploration and development of the property.
Gross proceeds of C$103,500
In the previously announced private placing, the firm closed the final tranches for gross proceeds of C$103,500.
Each flow-through unit consisted of one share and one-half share purchase warrant. Each whole flow-through warrant allows the holder to buy one further share which is not a flow-through share at 35 cents for 18 months after closing.
Proceeds from the placement will be used to continue exploring Gold Drop, potential project acquisitions, property option payments as well as general working capital, the firm said.
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