Sanatana Resources has signed a definitive agreement with LIRECA Resources to acquire the Gold Strike Two Project in Yukon, Canada.
LIRECA, along with its associated entity Florin Resources, collectively known as the Florin Group, are privately held companies that own five principal properties in Yukon.
These properties include the Gold Strike Two Project, the Gold Strike One Project, the Florin Gold Project, the FLR Gold Project and the RJ Gold Project, all situated within the Tintina Gold Province, which is known for its mineralisation linked to the Tombstone and Mayo Plutonic Suites.
Under the terms of the agreement, Sanatana will make a cash payment of C$500,000 ($361,744), with half payable on the closing date and the remainder held in escrow for up to 90 days post-closing.
Additionally, Sanatana will issue six million common shares to LIRECA on the closing date.
The Gold Strike Two Project is subject to a 3% net smelter returns royalty, with options for the payor to reduce the royalty to a minimum of 1%.
The project area comprises 293 contiguous quartz claims, covering approximately 59km² in the Mayo Plutonic Suite within the Mayo Mining District. The project covers most of the Rogue Pluton, part of the Mayo Plutonic Suite.
Exploration work completed in 2024 identified samples with anomalous gold, arsenic, bismuth and tungsten.
Sanatana also announced two concurrent non-brokered private placements to raise up to C$1.2m by selling up to 12 million units of the company, priced at C$0.10 each, for the definitive agreement.
Closing conditions for the acquisition and the private placements include TSX Venture Exchange approval and the completion of a name change for Sanatana, reflecting its focus on mineral properties in Yukon and British Columbia.
Sanatana CEO Peter Miles said: “The Florin Group is a mining project generator that has acquired an impressive portfolio of mineral properties in British Columbia, Quebec, Newfoundland and Labrador, with a focus on Yukon. The definitive agreement for Gold Strike Two establishes an important relationship with the Florin Group for Sanatana to negotiate further possible acquisitions from the Florin Group.
“Gold Strike Two is a key acquisition for Sanatana and, subject to closing, is expected to establish Sanatana as one of the few publicly traded companies with a prospective land position in the Rogue Plutonic Complex region, which has received significant industry recognition from Snowline Gold Corp’s recent Valley discovery.”
