District Metals Corp. completes the acquisition of its polymetallic property in Gruvberget in Sweden
CEO Garrett Ainsworth described the Gruvberget property as an “excellent addition” to the company’s “robust portfolio of potential polymetal properties in the productive Bergslagen district” in Sweden
() announces that it has completed the acquisition of a 100% share in the polymetallic Gruvberget property in the productive Bergslagen in Sweden from Explora Mineral AB.
Gruvberget extends over 5,286 hectares (Ha), has a northern and southern zone and is located 35 kilometers northwest of the company’s Tomtebo property.
District Metals CEO Garrett Ainsworth described the Gruvberget property as an “excellent addition” to the company’s robust portfolio of potential polymetal properties in the Bergslagen district.
READ: District Metals acquires the advanced exploration phase Gruvberget from Explora Mineral AB
“The northern and southern zones of the Gruvberget property include a one-kilometer-long mineralized trend with significant historical polymetallic drilling rigs that are open in most directions and provide compelling drilling targets,” says Ainsworth. “A detailed heliborne magnetic and electromagnetic survey (SkyTEM 312HP) is planned to begin at the Gruvberget property before the end of the year, giving us important geophysical data to follow up through mapping, exploration and geochemical sampling.”
To complete the transaction, District Metals issued 1 million shares and paid Explora $ 20,000 in cash. It also granted Explora a 2.5% Net Melting Area (NSR) on the Gruvberget property, subject to an option to repurchase a full 2.5% NSR royalty for $ 8 million at any time.
To maintain the project, the district must incur $ 500,000 in eligible expenses for the Gruvberget property within two years of closure.
In accordance with standard securities legislation, the closing shares have a holding period of four months from the closing date of the transaction.
The district’s advanced exploration stage The Tomtebo property covers 5,144 ha and is located between the historic Falung mine and Boliden’s Garpenberg mine in southern central Sweden.
Contact author Uttara Choudhury at [email protected]
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