Gold development company Nexus Gold Corp. (NXS:TSX.V; NXXGF:OTCQB) reported in a news release, that it has entered into an arms-length agreement with Shane Stares to acquire two additional mineral claims located in Red Lake, Ontario.
The firm indicated that the additional claims are both located in the immediate vicinity of its 100%-owned McKenzie Gold project and that the purchase will serve to expand the company's existing land package in the region. The new claim blocks will add 50 hectares to the western section of the McKenzie Island area bringing the total land package of the McKenzie Gold project up to about 1,400 hectares.
The company stated that it will issue 400,000 common shares and make a one-time cash payment of $4,000 to the seller in exchange for the two claims. The seller will also receive a 1% net smelter returns royalty on commercial production from the two transferred claims. The firm advised that the newly issued securities are subject to a statutory holding period of four months plus one day and that the acquisition remains subject to the approval of the TSX Venture Exchange.
Nexus Gold's President and CEO Alex Klenman commented, "We are happy to add ground to the McKenzie project, particularly on the island...Some of the more robust historical assays were obtained on McKenzie Island. By adding significantly to our island land position, we feel we've added value to the project prospectivity. We will look to implement a prospecting and sampling program on the new ground in the next couple of months."
The company indicated that the phase one diamond drill program at the McKenzie Gold project is scheduled to begin in a few weeks and added that drilling will commence when the drill rig and crew from contractor Chibougamau Diamond Drilling Ltd. finish their work on another nearby project. Nexus advised that it will issue a news release with an updated timeline when a start date is firmed up and the drill equipment and crew are mobilized.
The firm stated that the initial phase one drill program will consist of a minimum of 1,000 meters of diamond drilling to test the mineralization potential of several gold targets occurring within a corridor along the southern contact of the Dome Stock with felsic Volcanics of the Balmer Assemblage.
Nexus Gold is a gold development company based in Vancouver that has 11 exploration projects in Canada and West Africa.
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