Canadian junior MegumaGold has completed the acquisition of Osprey Gold, with projects in Nova Scotia’s largest historic bullion district, amid an exploration boom in the Atlantic province.
The deal creates a Nova Scotia-focused gold development and exploration company with a consolidated land package, combining Osprey’s historically producing, resource stage projects and under-explored exploration ground held by MegumaGold.
Halifax-based Meguma already had a 19% stake in Osprey, which it acquired in August last year.
Sean Kirby, executive director of the Mining Association of Nova Scotia (MANS), said the deal was great news for the companies and the province, as it creates additional opportunities for job creation and the opening of new mines.
“A poll recently released by Atlantic Gold shows that 76% of Nova Scotians support gold mining because of the jobs and economic opportunity it creates,” Kirby noted.
More than 60 years after Nova Scotia’s last gold mine stopped producing, the Atlantic province is attracting local and international companies lured by its riches and the easy access to most assets, located near existing highways.
Before Meguma-Osprey’s announcement, one of the most touted deals was the acquisition of Atlantic Gold by Australia’s St. Barbara last year. With the move, the Melbourne-based miner scooped up the Moose River complex, which comprises one producing open-pit (Touquoy) and three others in development (Beaver Dam, Fifteen Mile Stream and Cochrane Hill).
The newly merged company said its near-term goal was completing complete targeting, permitting and commence drilling programs at Caribou, Killag, and Touquoy West. It also plans to start a detailed ground survey program on the optioned Genius Metals property.
Meguma will the move to delineate additional mineral resources on existing deposits in its portfolio and advance existing exploration targets through discovery drilling.