James Bay Minerals, a Canada-focused lithium explorer, has made a significant breakthrough by executing a definitive term sheet to purchase the 627-acre Independence Gold Project in Nevada, US. The project is adjacent to Nevada Gold Mine’s Phoenix Project and is currently owned by Independence Mining, a joint venture between Battle Mountain Resources (BMR) and Americas Gold Exploration.
In this transaction, James Bay has agreed to acquire 100% of BMR for $2.43 million worth of shares at $0.15 each, subject to shareholder approval and completing a $1.5 million placement. This move has led to a 65% spike in James Bay Minerals’ share price to $0.33 per share.
Through this acquisition, James Bay will obtain a 51.54% interest in the Independence Gold Project with the opportunity to increase its stake to 75% through an earn-in agreement with Americas Gold Exploration. The company will issue 2 million shares to Americas Gold and commit to exploration expenditure of at least US$1.5 million within one year.
To secure the final 25% interest, James Bay must incur an additional US$1.5 million in exploration expenditure and pay US$1.5 million to Americas Gold. A cash fee of US$2 million is also payable within 12 months of production commencement.
Executive Director Andrew Dornan sees this acquisition as a valuable opportunity to enhance the company’s asset base with a high-grade gold asset that offers growth potential. He highlights the existing high-grade resources, growth potential in near-surface and skarn deposits, and the advantageous location of the project in a prime mining district.
In addition to the acquisition, James Bay is conducting a placement of 10 million shares at $0.15 per share to raise $1.5 million, with Wagtail Capital serving as the lead manager. Directors of the company are also subscribing for shares under this placement.
The proceeds from the placement will be allocated towards exploration and development activities on both the company’s existing projects and the newly acquired Independence Gold Project. This strategic move positions James Bay Minerals for further growth and success in the mining industry.
With this transformative deal, James Bay Minerals is poised to capitalize on the potential of the Independence Gold Project and further solidify its position in the market. The company’s commitment to exploration and development underscores its dedication to maximizing the value of its assets and delivering long-term benefits to its shareholders.