BTU Metals Acquires 100% Interest in Dixie East Block 3 Project
BTU METALS CORP. (BTUMF) entered into a definitive agreement to acquire a 100% interest in the Dixie East Block 3 Project located approximately 6 kilometres east of the Kinross (KGC)-owned Great Bear Project in the eastern part of the Red Lake District, Ontario. The newly acquired claim package is directly adjacent to the Kinross and BTU Dixie Halo Project and further augments the Company's strategic land position in one of Canada's most active and prospective gold exploration districts. The new acquisition brings the Company's total Dixie East Project strike coverage to approximately 17 kilometres. The Dixie East Block 3 claims strengthen the Company's district-scale exploration footprint surrounding the multi-million-ounce Great Bear gold deposit being advanced toward production by Kinross as well as the easterly extent of their recently announced high-grade Strider gold discovery. The Dixie East Block 3 claims are directly contiguous with the Company's Dixie Halo Project, currently operated by Kinross under an option and Joint Venture agreement and further enhances the Company's exposure to ongoing exploration success in the broader Great Bear district and increases the Company's cumulative Dixie East land package to approximately 17 km of strike length. The newly acquired claims occur within the interpreted extension of the same east-trending regional structural corridor associated with gold mineralization at the Great Bear Project, including the LP Fault system. Kinross recently reported high-grade gold drill intercepts west of the new property from the new Strider Zone, including 215.4 g/t gold over 2.1 metres, results that further support the importance of this regional scale gold mineralized structural corridor and that shows the potential of the broader mineralized system to contain high gold values well beyond the current Great Bear known mineralization. The Company will commence work on the Block 3 property this summer. The Company is funded and will commence geological work immediately upon approval of the property agreement. Pursuant to the definitive purchase agreement, the Company will acquire 100% interest in the Block 3 claim group through the issuance of an aggregate total of 800,000 common shares of the Company, a cash payment of C$16,000 plus a 1.5% NSR, with the right for BTU to buy back a 0.5% interest at any time for C$500,000, to the arm's length vendors. This transaction is subject to approval from the TSXV. The shares issued will be subject to normal course trading restrictions.
