Phoenix Global Mining Ltd. said Feb. 28 that it secured an option to acquire an 80% interest in ExGen Resources Inc.'s Gordon Lake gold project in Canada's Northwest Territories.
The property comprises two leases covering 609 hectares and hosts 17 zones of high-grade gold mineralization.
Phoenix Global paid ExGen an initial US$25,000 to acquire the option.
Upon exercise of the option, the company is then required to issue 2 million shares within 90 days and spend at least US$250,000 on the project within 12 months. It also needs to pay US$25,000 per year in the first two years and US$50,000 per year thereafter until the completion of a bankable feasibility study.
ExGen will retain a 20% stake until construction and a 2.5% net smelter royalty from commercial production.
Plans for the property include a preliminary detailed assessment and a field work program to generate measured and indicated resources over a two- to three-year period.
In addition, Phoenix Global noted that it appointed ExGen President Jason Riley to its board as a nonexecutive director.
