Falcon Gold Corp. said June 13 that it signed a letter agreement to acquire the Wabunk Bay cobalt property comprising two claims covering 304 hectares in northwestern Ontario.
Wabunk Bay, located east of the past-producing Uchi gold mine, is prospective for cobalt, copper, nickel and platinum group metals.
To earn a 100% interest, Falcon Gold will pay C$200,000 in cash and issue 300,000 shares to the unnamed seller, which will retain a 1% net smelter royalty on completion of the acquisition. The company will have the right to buy the royalty back for C$1 million at any time up to the start of production.
The company agreed in February to acquire seven mining claims in the Canadian province, which included a past-producing gold mine. Falcon Gold also has the Burton gold project in Ontario, in which IAMGOLD Corp. agreed to acquire a 75% interest.