As part of the deal, Sanatana will pay C$500,000 ($361,744) in cash, with half due at the closing and the remainder held in escrow for up to 90 days after the 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 (NSR) royalty, with an option for the payor to reduce it to a minimum of 1%.
The project consists of 293 contiguous quartz claims, covering around 59 km² in the Mayo Plutonic Suite of the Mayo Mining District. It includes most of the Rogue Pluton, which is part of the Mayo Plutonic Suite. Exploration activities conducted in 2024 identified gold, arsenic, bismuth, and tungsten anomalies in the area.
Sanatana also announced two non-brokered private placements to raise up to C$1.2 million by issuing up to 12 million units, priced at C$0.10 each, to support the acquisition. Closing of the deal and the private placements are subject to approval from the TSX Venture Exchange and a name change for Sanatana, aligning with its focus on mineral properties in Yukon and British Columbia.
Sanatana CEO Peter Miles commented: "The Florin Group is a mining project generator with an impressive portfolio of properties in British Columbia, Quebec, Newfoundland, and Labrador, focusing particularly on Yukon. The agreement for Gold Strike Two marks an important relationship with the Florin Group and opens the door for Sanatana to explore additional acquisition opportunities from them. Gold Strike Two is a pivotal acquisition for us and, if completed, will position Sanatana as one of the few publicly traded companies with a significant land position in the Rogue Plutonic Complex region, a location that has garnered attention following Snowline Gold Corp’s recent discovery at Valley."
