Canadian miner StrikePoint Gold (TSXV:SKP,OTCQB: STKXF) will acquire the historic Porter Idaho silver property located in British Columbia from Skeena Resources (TSXV:SKE), the company announced on Wednesday (May 2).
According to the company’s press release, the Porter Idaho project contains two shear hosted silver-rich vein systems: the Silverado and Prosperity-Porter Idaho.
“StrikePoint is very excited to make a high-grade silver acquisition in the prolific Golden Triangle. With our strong technical team, healthy treasury and renowned precious metal shareholders, we look forward to diamond drilling the underexplored area between the two silver rich mineralized systems,” said CEO Shawn Khunkhun.
“The acquisition comes with a high-grade resource and there’s significant potential to add more ounces,” he added.
As part of the acquisition, Skeena will receive C$1.75 million in cash plus another C$1.75 million in StrikePoint common shares at a value of C$0.225.
The company will also retain a 1-percent net smelter return, with the potential of 0.5 percent being bought back by StrikePoint for C$750,000.
Skeena’s CEO, Walter Coles Jr. commented, “Skeena is pleased to entrust Porter Idaho to StrikePoint, a company which has the technical capabilities to successfully advance the project. We have always seen the potential for mineralization to connect on each side of the mountain and will be excited for drill results this summer.”
Skeena obtained Porter Idaho in 2016, through the acquisition of Mount Rainey Silver but has decided to shift its focus solely on its Snip and Eskay Creek gold projects.
“The acquisition comes with a high-grade resource and there’s significant potential to add more ounces,” said StrikePoint’s chief executive, Shawn Khunkhun.
According to the companies, indicated resources for the deposit stand at 394,700 tonnes grading 868 grams silver, 3.37 percent lead and 1.41 percent zinc, whereas 89,000 tonnes grading 595 grams silver are inferred.
As of 3:47 p.m. EST on Wednesday (May 2), StrikePoint’s share price was trading at C$0.24.
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Securities Disclosure: I, Nicole Rashotte, hold no direct investment interest in any company mentioned in this article.
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