Lode Gold Resources Inc. (TSXV: LOD) (OTCQB: SBMIF) has recently entered into a definitive agreement with Fancamp Exploration Ltd. (“Fancamp”) for a $3.5 million investment. This agreement will lead to the formation of one of the largest mineral claims holdings in New Brunswick, covering 420 km² across a highly prospective belt known for significant discoveries.
### Creation of a Strategic Joint Venture
The investment agreement establishes a 50-50 joint venture between Gold Orogen and Fancamp, where Fancamp will become a key shareholder of Lode Gold and a 19.9% shareholder of Gold Orogen. This partnership will combine the strengths of both companies and provide considerable exploration and discovery leverage. Drilling is planned for both properties in the upcoming months, aiming to further explore the mineral potential of the region.
### Key Exploration Assets
Gold Orogen, also known as the “Spin Co,” will have strategic interests in four key exploration assets in two emerging orogenic gold camps in North America: Yukon and New Brunswick. Fancamp’s investment will be allocated with a significant portion designated for flow-through eligible spend in Yukon and New Brunswick.
### Expert Leadership and Technical Team
The leadership, management, and technical team of Gold Orogen and the joint venture company will benefit from the expertise and experience of industry leaders such as Wendy T. Chan, Rajesh Sharma, Buddy Doyle, Charles Tarnocai, and Francois Auclair. Their combined experience in mineral exploration and development will drive the success of the exploration projects in both regions.
### Focus on Exploration and Development
The McIntyre Brook and Riley Brook projects will be major mineral property holders in the Wapske Formation play, with a focus on conducting V-TEM airborne geophysical surveys to identify potential mineral deposits. Exploration efforts will be aimed at unearthing the gold mineralization potential of the region, building on previous exploration endeavors with a focus on gold assays.
### Potential District Play
Fancamp’s CEO, Rajesh Sharma, noted that the joint venture could potentially lead to a district play, emphasizing the significance of the partnership in creating a pure play exploration company with extensive land holdings in New Brunswick.
### Enhanced Shareholder Value
The Investment Agreement also includes provisions for the Spin Out of Gold Orogen, where Lode Gold shareholders will receive shares of Gold Orogen in addition to retaining shares of Lode Gold. This strategic move aims to enhance shareholder value and provide an opportunity for investors to benefit from the exploration and development activities in the region.
