Business
Falco Resources Acquires Donalda Property Adjacent to Horne 5 Project
MONTREAL, QUEBEC--(Marketwired - September 27, 2017) - Falco Resources Ltd. (TSX VENTURE: FPC) ("Falco" or the "Company") is pleased to announce the execution o
About this update from Falco Resources Ltd.
[{"type":"text","content":"MONTREAL, QUEBEC--(Marketwired - September 27, 2017) - Falco Resources Ltd. (TSX VENTURE: FPC) (\"Falco\" or the \"Company\") is pleased to announce the execution of a letter of agreement for the acquisition of the Donalda property (\"Donalda\") from Globex Mining Enterprises Inc. (\"Globex\"). Donalda is located near Falco's 100% owned Horne 5 Project located in Rouyn-Noranda, Québec. In consideration for the acquisition of the Donalda property, Falco has agreed to pay $300,000 in cash and issue 350,000 units to Globex (\"Unit\"). Each Unit consists of one (1) common share (\"Common Share\") of Falco and one (1) common share purchase warrant (\"Warrant\") of Falco. Each Warrant will entitle the holder thereof to purchase one (1) Common Share of the Company at a price of C$1.15 per Common Share, for a period of 5 years following the closing date. Additionally, Falco has agreed to grant Globex a 2.5 % Gross Metal Royalty on all mineral production from the Donalda property and to transfer a 100% ownership of Falco's Dickenson property located on the east side and adjoining Globex's Francoeur/Arntfield gold property. The transaction is subject to Falco obtaining all required regulatory approvals from the TSX Venture Exchange and execution of a final acquisition agreement, including customary representations, warranties, covenants and conditions for a transaction of such nature. The Donalda Mine Property The Donalda Mine Property is located within the town of Rouyn-Noranda, Québec, due east of the Horne 5 deposit and Quemont mine infrastructure. The property consists of seven mining claims, covering approximately 146 hectares in the Rouyn Township. The property is host to two important, sub parallel, extensive and continuous gold bearing quartz veins with a historical resource (non NI 43-101 compliant1) of 1.5 million tonnes grading 6.9 g/t gold, of which approximately 790,000 tonnes were mined and approximately 710,000 tonnes remain unexploited. During mine production, a 620 metre shaft provided access to the two known gold bearing vein structures. The majority of the gold was extracted from the Donalda #1 vein (782,360 tonnes at 5.58g/t were mined over seven years of production) which was mined over a strike length of 825 metres and with a dip length of 400 metres. The #2 vein was discovered about 300 metres below the #1 vein. The...