North of 60 Mining News - The mining newspaper for Alaska and Canada's North

Golden Predator Mining Corp. Feb. 13 announced a deal with Precipitate Gold Corp. that will add 8,490 hectares (20,980 acres) of mineral claims to its 3 Aces project, expanding this high-grade gold property to roughly 357,000 hectares(882,200 acres) that covers a 30-kilometers (19 miles) stretch of southeastern Yukon.

This new property, known as Reef, extends north from the original 3 Aces property to Hy-Jay, a property Golden Predator agreed to acquire in January.

To acquire full ownership of Reef, Golden Predator has agreed to pay Precipitate C$1.05 million over a 36-month period; and issue Precipitate 200,000 common shares and 200,000 warrants, half at closing and half in a year.

Golden Predator has also agreed to issue up to C$300,000 worth of its shares, calculated on 21-day average at the time of issuance, and 300,000 warrants to Precipitate at two years and three years after the closing.

Precipitate will retain a 2 percent net smelter return royalty on some of the claims and a 1 percent NSR on the remaining claims. Golden Predator has the option to acquire up to half of this royalty.

Golden Predator said previous exploration on the Reef and Hy-Jay properties has outlined soil geochemical anomalies with similar metal signatures to the core area of 3 Aces, where recent exploration has identified multiple zones of high-grade gold.

"We look forward to conducting detailed site work this summer on the new holdings while a robust drill program continues at the original 3 Aces property," said Golden Predator CEO Janet Lee-Sheriff.

-SHANE LASLEY