- After meeting expenditure requirements early, Auteco Minerals (AUT) will soon increase its stake in the Pickle Crow Gold Project to 51 per cent
- In January last year, Auteco signed a term sheet with First Mining Gold to buy an 80 per cent interest in the Canada-based project
- To earn 51 per cent, Auteco was given three years to spend C$5 million (roughly A$5.15 million) on exploration, but it has done so in just over one year
- Positively, the gold explorer just has to issue 100 million shares to First Mining, and, as long as shareholders approve this, Auteco will gain its 51 per cent stake
- Auteco is up 9.2 per cent and shares are trading at 9.5 cents
Auteco Minerals (AUT) will soon increase its stake in the Pickle Crow Gold Project to 51 per cent.
The company has undertaken a successful exploration program at the Ontario-based project, which has led it to satisfy the expenditure requirements under stage one of the earn-in agreement.
In January 2020, Auteco signed a binding term sheet with First Mining Gold to acquire an 80 per cent interest in First Mining’s subsidiary, PC Gold, which owns the Pickle Crow Gold Project.
Significantly, the project is one of Canada’s highest grade historical gold mines. However, there has been very little exploration on the property since the mid-1960s. This meant that Auteco’s exploration program was the first the project has seen in more than 50 years.
Around C$100,000 (roughly A$103,060) in cash, along with 25 million shares, was paid to First Mining last year.
Earning 51 per cent
As outlined in the agreement, Auteco had to spend C$5 million (roughly A$5.15 million) on exploration over three years. However, it has done so in just over one year.
“We are delighted to have completed the stage one expenditure requirements, as it marks a significant milestone in the development of this exciting project,” Executive Chairman Ray Shorrocks said.
Auteco funded and operated a major exploration program which delivered a JORC 2012 inferred resource of one million ounces at 11.3 g/t gold.
“The one million ounce inferred resource we have established, and its tier-one location demonstrate the Pickle Crow Gold Project is a superb gold asset with immense growth potential,” Ray added.
Subject to shareholder approval, Auteco will now issue 100 million shares to First Mining. If and when the issuance has been approved and has been completed, Auteco will have earned a 51 per cent interest in the project.
A shareholder meeting is expected to be held in late May 2021.
Auteco is up 9.2 per cent and shares are trading at 9.5 cents at 1:34 pm AEDT.