BTU Metals Corp. said Sept. 5 that it agreed to acquire the Burnthut gold project in northwestern Ontario in a cash and stock deal.
The property is contiguous to First Mining Gold Corp.'s Goldlund project. It is east and northeast of First Mining's current regional drill area and covers all the historic gold occurrences on Burnthut Island in Lake Minnitaki.
Under the terms, the company will pay C$85,000 cash and issue 750,000 shares to the undisclosed seller over a three-year period. The seller also retains a 1.5% net smelter royalty, purchasable by BTU for C$500,000 at any time.
BTU CEO Paul Wood said the company will work to verify historic exploration data, with a sampling and prospecting program to be launched this fall. "The objective is to fast track the Burnthut project to a drill program this winter."
The transaction follows the company's proposed acquisition of the Dixie Halo gold project, also in Ontario, last month.