New Luckystrike for White Gold projects

 

Last updated 5/25/2018 at 3:46am

White Gold District exploration Goldstrike, Lucky Strike Yukon Territory

This open-air shelter served as the core shack for a 1,032-meter drill program carried out at the Lucky Strike property in 2017. One hole drilled at the property's Monte Carlo zone last year cut 22 meters averaging 5.36 grams per metric ton gold.

Goldstrike Resources Ltd. May 16 announced plans to spin its six properties in Yukon's White Gold District, Yukon into a subsidiary to be known as Luckystrike Resources Ltd.

Goldstrike said shifting the White Gold District properties into a separate public company will position these gold assets to be valued on a standalone basis and will allow Goldstrike management to focus on that company's strategic partnership with Newmont Mining Corp. on the Plateau gold property.

"We are pleased to announce the arrangement, which we believe will help unlock and maximize value for our shareholders," said Goldstrike Chairman and CEO Terrance King.

Early last year, Newmont cut a C$53 million deal to earn up to a 75 percent stake in the expansive and gold-rich Plateau property by paying Goldstrike C$8 million and investing C$38.8 million to explore the gold property over the next decade.

Given the success of the 2017 program, Newmont has opted to move forward with a joint venture at Plateau and is the manager of this exciting gold project.

During a joint venture meeting held in April, the partners agreed to complete up to 10,000 meters of drilling this year focused on the high-quality targets identified last year.

With Newmont's involvement at Plateau, Goldstrike renewed its focus in the White Gold District last year, including drilling on the Lucky Strike property.

Based on the success of this inaugural drilling, Goldstrike said earlier this year that it is planning the largest exploration program in the history of Lucky Strike.

"The results to date demonstrate that the project is one of the most important new gold discoveries in the White Gold Camp in 2017 and has all the makings for a flagship standalone project," King said in January. "With the largest drill and exploration campaign to date being laid out for Lucky Strike, the 2018 season promises to be an exciting time for this project."


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And now Lucky Strike will likely be the flagship property of a standalone gold explorer.

As a result of the proposed arrangement, Goldstrike shareholders will receive one common share of Luckystrike for every seven common shares of Goldstrike held; and Luckystrike will indirectly acquire the Goldstrike's White Gold District properties – Lucky Strike, Hotspot, the Bull's Eye, BRC, Gold Source and King's Ransom.


17 helicopters, Cessna 206 support plane, mining and oil exploration,  precision long line, core and seismic drills

Prior to completion of the arrangement, Goldstrike will invest C$2.5 million in Luckystrike, by subscribing for 8.33 million units of the new company at C30 cent per unit, with each unit consisting of one Luckystrike share and one warrant exercisable into an additional share for C60 cents (or such other price acceptable to Goldstrike and Luckystrike) for a period of three years after closing.

The agreement also considers an additional non-brokered private placement of subscription receipts by Luckystrike in the amount of up to C$2.5 million, with each receipt converting into units (as described above) upon closing of the arrangement.

It is expected that the directors of Luckystrike will consist of William Chornobay, Yilu (Lucy) Zhang, Terrence King, Reimar Koch and Ewan Webster, with Chornobay assuming the role of president and CEO and Zhang acting as chief financial officer.

"On completion, Luckystrike will be positioned well to advance our efforts in the White Gold District, with a strong balance sheet and experienced management team," said King.

–SHANE LASLEY

 

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