AZTR receives NYSE delisting warning over equity requirement
VANCOUVER - Fairchild Gold Corp. (TSXV:FAIR), a mining company with a current market capitalization of $10.79 million and showing steady price performance with an 8.62% year-to-date return according to InvestingPro, announced Monday it has entered into a Memorandum of Understanding with Emergent Metals Corp. (TSXV:EMR) to acquire the Golden Arrow gold and silver project in Nevada for approximately $4.1 million.
The acquisition involves a $250,000 non-refundable payment upon signing, $350,000 upon regulatory approval, issuance of 12.5 million Fairchild common shares, and a $3.5 million senior secured note with an 8.5% interest rate. The deal also includes a 0.5% net smelter return royalty. InvestingPro data shows Fairchild maintains a notable 15.24% dividend yield and has received a GOOD overall Financial Health score, suggesting strong fundamentals to support this strategic acquisition.
Located 40 miles east of Tonopah and 60 miles east of Kinross Gold Corporation’s Round Mountain mine, Golden Arrow contains two principal resource areas - Gold Coin and Hidden Hill. For detailed analysis of mining companies and their growth potential, InvestingPro subscribers gain access to over 20 additional key metrics and exclusive insights. According to a 2018 resource estimate prepared by Mine Development Associates, the project has a measured and indicated resource of 12.17 million tons averaging 0.024 oz/ton gold and 0.33 oz/ton silver, containing 296,500 ounces of gold and 4 million ounces of silver.
The project also has an inferred resource of 3.79 million tons averaging 0.013 oz/ton gold and 0.33 oz/ton silver, containing 50,400 ounces of gold and 1.25 million ounces of silver.
The property benefits from existing permitting infrastructure, including a previously approved U.S. Bureau of Land Management Plan of Operations allowing up to approximately 240,000 feet of drilling.
Fairchild also announced the appointment of Guy Lauzier as Technical Director for the Golden Arrow Project. Lauzier has previously held roles with Barrick Gold, Newmont, Agnico Eagle, and Teck Resources.
The parties have agreed to negotiate and execute a definitive purchase agreement within 30 days. The transaction requires TSX Venture Exchange approval.
This article is based on a press release statement from Fairchild Gold Corp.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.