Northern Cobalt Ltd. signed a binding term sheet to acquire a majority stake in Millrock Resources Inc.'s Goodpaster gold project, which surrounds Northern Star Resources Ltd.'s Pogo gold mine in Alaska.
Northern Cobalt can own 60% of the entire property by spending US$20 million, issuing 38 million shares, paying US$200,000 and conducting a 7,500-meter diamond core drill program over four years.
The company can then elect to form a specific joint venture on one block, in which its ownership will rise to 70% by funding a bankable feasibility study on the area. Its stake on that block will increase to 80% by loan-carrying Millrock to first production.
Northern Cobalt said Oct. 17 that it secured an exclusive option to complete due diligence for up to 100 days. Drilling will start in the first quarter of 2020.
In connection with the deal, the company also said PAC Partners Securities and Taylor Collison received firm commitments for a A$1.5 million placement at 3.5 Australian cents per share. Proceeds will be used to progress due diligence and start preparatory work for drilling.