GFG Resources has reached a definitive deal to divest its wholly owned Rattlesnake Hills Gold Project in central Wyoming, US, to Patriot Gold Vault for an aggregate consideration of nearly C$3.3m ($2.4m).
This move follows a binding letter of intent signed in May 2024.
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The Rattlesnake Hills Gold Project, positioned nearly 100km south-west of Casper, is a district-scale gold exploration endeavour.
It lies within a 1,500km-long belt of alkalic intrusive complexes along the eastern side of the Rocky Mountains, known for multiple gold deposits.
Historic drilling at the site, totalling around 100,000m, has delineated three significant zones of alteration and precious metal mineralisation at North Stock, Antelope Basin, and Blackjack.
The bulk of the drilling has targeted near-surface, open-pit mineralisation, yielding notable intercepts such as 1.85g/t Au over 236.2m and 4.20g/t Au over 77.7m.
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By GlobalDataBeyond the established zones, GFG believes the district harbours considerable potential, having identified several kilometre-scale greenfield targets that remain untested.
These targets, stemming from the company’s geophysical and geochemical programmes, display strong similarities to the mineral systems at North Stock and Antelope Basin.
For picking a 100% stake in the Rattlesnake project, Patriot has already made an initial payment of C$250,000 upon signing the binding letter of intent.
A subsequent payment of C$250,000 will follow upon the execution of the definitive agreement, with an additional C$1.2m due at the transaction’s close.
Patriot will also issue shares valued at $600,000 or three million common shares, whichever is greater, depending on its share price and listing status.
A year post-closing, Patriot will pay a further C$1m in cash to GFG.
Additionally, Patriot will assume responsibility for the $219,000 reclamation bond for the project, which GFG will recover.
Should a National Instrument 43-101 resource estimate reveal a mineral resource exceeding three million ounces of gold, Patriot will pay GFG an additional C$1 per ounce in cash or shares, at Patriot’s discretion.
Patriot is also committed to reimbursing GFG for all costs and expenses incurred from the date of the signed LOI to the closing date.
