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Stratabound Minerals to acquire California Gold Mining

Stratabound Minerals president and CEO Kim Tyler at the Golden Culvert gold project in southeast Yukon. Credit: Stratabound Minerals Corp.

Canada-focused junior Stratabound Minerals (TSXV: SB; US-OTC: SBMIF), which is advancing its Golden Culvert project in southeastern Yukon, 25 km north of Seabridge Gold’s (TSX: SEA; NYSE: SA) 3Aces project, and the McIntyre Brook property in New Brunswick, 80 km west of Bathurst, is expanding its geographical footprint and acquiring California Gold Mining (CNSX: CGM) and its Fremont gold project in the US.

Fremont, in California’s Mariposa County, has a resource of 9.36 million tonnes grading 1.71 grams gold per tonne for 515,000 oz. of gold and another 364,000 oz. of inferred gold contained within 7.85 million tonnes grading 1.44 grams gold per tonne. The 2016 resource estimate extends to a depth of about 225 metres below surface, California Gold Mining states on its website, and the mineralization is open at depth “as evidenced by extensive historical underground mine workings.”

Under the all-share deal, California Gold shareholders will receive one common share of Stratabound Minerals for each California Gold share they own, which values their shares at 22.3¢ apiece, and marks a 104.8% premium to their 20-day volume weighted average price, and a 72.7% premium based on the closing share prices of both companies on April 20.

Stratabound’s Golden Culvert project is situated within the Yukon’s Tintina gold belt

“Fremont provides a tremendous opportunity to expand well beyond its current gold resources, is complimentary to our existing early-stage assets and a powerful catalyst of growth for both of our shareholders,” Stratabound’s president and CEO, Kim Tyler, stated in a press release announcing the acquisition. “Our strong cash position, concentrated long-term investor base, and team in place will allow us to immediately unlock value on this mutually beneficial transaction.”

California Gold Mining announced in December that it was launching  a strategic review process “to explore, review and evaluate a broad range of potential alternatives focused on maximizing shareholder value, including a potential sale or merger of the company and the sale or joint venture of the company’s Fremont property.”

The company, which acquired Fremont in March 2013, describes the property as consisting of a private and patented land package of 3,351 acres of historically producing gold mines, with a state highway, abundant water sources and an electric substation. It notes that Fremont is situated in California’s Mother Lode gold belt.

Stratabound’s Golden Culvert project is situated within the Yukon’s Tintina gold belt. Highlights from its 2020 drill program included 6.8 metres of 10.51 grams gold per tonne from 110.3 metres; 16.4 metres of 0.88 gram gold per tonne starting at 6.3 metres; and 9.1 metres of 1.1 gram gold per tonne from 84.9 metres.

Stratabound notes that the mineralized corridor is within a 3-km long by 250-metre wide gold-in-soil anomaly with gold grades in excess of 30 parts per billion.

In January, the company completed an option agreement to acquire a 100% interest in an additional 15.7-sq.-km of claims around Golden Culvert, expanding the property to 99.1 sq. km.

In New Brunswick, its 59.5-sq.-km McIntyre Brook gold project and the Captain copper-cobalt deposit, are in the province’s Bathurst camp. At McIntyre Brook, the Main showing has returned 40 grab and trench samples between 0.25 gram gold and 41.6 grams gold along 300 metres of strike.

Assays for six Captain holes, released in March, from a 15-hole drill program included 4.5 metres of 1.72% copper-equivalent from 21.4 metres; 12.5 metres of 1.53% copper-equivalent starting at 32.1 metres; and 11.1 metres of 2.26% copper-equivalent from 44.4 metres. Stratabound sees potential for a small-scale, high-grade mining operation at this site, which could direct ship feed for custom processing.

(This article first appeared in The Northern Miner)