The Stewart and Rozan properties lie close to Ximen's Kenville gold mine and consist of 60 mineral claims covering a total of 7,739 hectares, the firm said in a statement.
Ximen has an acquisition option on the Kenville mine, which produced 65,236 ounces of gold, and 27,686 ounces of silver between 1889 and 1956, and it wants to bring it back to life to establish a high-grade, 20-year, producing gold mine, while concurrently exploring the limits of the reserve.
Rozan spans 1,950 hectares and comprises 32 claims. It lies 8 kilometers southeast of Kenville.
Emgold has previously completed 18 diamonds holes, totaling 1,906.8 metres that resulted in a number of significant gold intercepts, it said.
Meanwhile, Stewart is a 5,789-hectare property comprised of 28 claims, which lies 20 km south of the Kenville project and has been explored for gold, molybdenum, base metals and tungsten and has known occurrences of gold, silver, molybdenum, and tungsten.
A total of 103 diamond drill holes totaling 13,737 metres have been sunk there, most of which targeted moly and tungsten.
Significant intercepts were obtained for moly and gold and potential exists for high-grade vein and disseminated gold deposits, and for base metal deposits, said Ximen.
The terms of the acquisition included that Ximen will pay C$100,000 to Emgold at closing, along with 1.275 million Ximen shares.
In addition, it will issue 1.275 million share purchase warrants to Emgold at closing, which allow it to buy Ximen shares at C$0.45 each, exercisable for three years, increasing to C$0.55 per unit and exercisable in years four and five.
The transaction is subject to TSX Venture Exchange approval.
Shares were unchanged at C$0.44 on the day.
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