R.J.K. Explorations Ltd. agreed to acquire the Moosehead Gold District project in Newfoundland and Labrador via a takeover of the private company that owns the ground for 9,660,000 common shares and C$100,000 in cash.
The company will also grant a 2% gross royalty to the seller and must raise C$1 million as a condition of the deal, according to an Aug. 7 release.
R.J.K. Explorations is planning a nonbrokered private placement of 20 million shares at 5 cents apiece and will use the proceeds to finance the acquisition and for exploration on the project.
The Moosehead Gold District project comprises 208 claim units covering 5,200 hectares adjacent to and on trend with the mineral license hosting Sokoman Iron Corp.'s Moosehead gold project in the eastern Canadian province.
Sokoman recently reported a Moosehead drill result of 11.9 meters grading 44.96 g/t of gold. Companies angling to acquire nearby ground include New Point Exploration Corp., Tasca Resources Ltd., New Tech Lithium Corp. and Sunvest Minerals Corp.