GFG Resources Inc’s (TSXV:GFG) Rattlesnake is a giant project requiring significant money
Bob Moriarty | April 5, 2022 | SmallCapPower: I like GFG Resources Inc. (TSXV:GFG) a lot. They released excellent drill results recently from their key Montclerg Gold project forty-eight km east of the famous Timmins Gold Camp. Intercepts included 4.82-g/t gold over 26 meters and 11.29 g/t gold over 1.7 meters. So far they have only released four of the fourteen holes in their inaugural drill program but they have 10,000 meters planned for 2022. Look for more drill results to come out shortly.
(The following is an article originally published on 321gold.com on March 4, 2022)
In late February the company announced an agreement to spend $1 million to purchase an additional 6,500 ha of land immediately next to Montclerg. The deal is a little complicated with other portions of payments so investors should read the press release for all the details but basically GFG likes the position enough to add to it.
The agreement for Montclerg calls for GFG to issue an additional $1 million in shares over the next two years and to spend $1 million in exploration. This is in addition to the 7.4 million shares already issued valued at $1 million and $1 million in assessment credits to be transferred to the vendor.
GFG has other gold resources in the Ontario region and I won’t go into detail on the Pen and the Dore projects because I don’t see it adding any illumination. There are far more details on those projects here.
My favorite project of GFG is the Rattlesnake project located in Wyoming. Quinton Hennigh and I went to visit the project in October of 2008 when it looked like the world’s financial system was about to collapse. We got to the project just in time to see inches of snow fall on ground that Quinton assured me had a lot of gold under the snow. I had to take his word on it.
Last April GFG signed an agreement with Group 11 Technologies to advance the project. Group 11 is private for now and has the right to acquire up to 70% of the project. Group 11 is committed to spending $9.5 million USD in exploration expenditures with 100% of the holding costs and to cover all expenses to advance the project into commercial production. They will issue common stock in Group 11 up to 9.9% on a fully diluted basis and provide a cash payment of $7.5 million USD.
I liked Rattlesnake from the first time I saw it but it’s a giant project and giant projects require a lot of money to advance. I was thrilled to read about GFG coming to a deal to production.
GFG will have important news soon. Stay tuned.
GFG is an advertiser. I have participated in past PPs and own shares so naturally I am biased. Do your own due diligence.
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