Australian resource company Dark Horse Resources Ltd is exploring for large gold deposits. Dark Horse announced in June to have entered a partially binding term sheet with Sotkamo Silver AB to acquire Tampere Gold Project in Finland and Bergslagen Tungsten Project in Sweden. The transaction is planned to be completed against an upfront payment of €150,000 and transaction documentation expenses in the European countries.
The company has released an update on the acquisition of Finland gold and Sweden tungsten exploration tenements and the ongoing share purchase plan for existing shareholders.
Dark Horse’s Finnish and Swedish Exploration Permits
The Tampere Gold Project includes 7 highly prospective gold exploration permits in the Tampere region of Finland, Hopeavuori (2 permits), Isovesi, Järvenpää, Kalliojärvi, Lavajärvi and Metsäkylä. These permits are in close proximity, covering a total area of 286Ha. Moreover, the project lies within 100km of Tampere that currently hosts 3 gold mines- Orivesi, Jokisivu and Kaapelinkulma, and a processing facility at Vammala- all operated by Dragon Mining Limited.
The Bergslagen Tungsten Project holds 7 exploration permits in the fecund Bergslagen mining district of Sweden, covering a total area of 11,012Ha. The project consists of Yxsjöberg, Gubbo, Hörken, Högfors, Sandudden and Gänsen Prospects. On 7 July 2020, Dark Horse Resources updated to have established two separate wholly owned subsidiaries to hold the Finnish gold permits and Swedish tungsten permits, respectively. The Company has already appointed a Company Administrator to manage its corporate affairs in Finland. Additionally, accountants, auditors and legal counsel have been appointed. The Permit Purchase Agreement (PPA) between Dark Horse and Sotkamo Silver AB has advanced and is expected to close within the very near future. The agreement also includes a 45-day exclusivity term between the two parties. Upon completion of the agreement, the permits will be transferred from Sotkamo to Dark Horse’s wholly owned subsidiaries. The process for such permit transfers in Sweden and Finland is anticipated to take 1 to 2 months.
Tampere Gears Up for Upcoming Drilling Program
An extensive re-evaluation of the geological and exploration data is underway by Dark Horse’s exploration team, which is also finalising the design of a drilling program at the Finland Tampere Gold project. Dark Horse plans to give special attention to the Hopeavuori prospect, which exhibited high-grade assay results from historic drilling programs. A total of 54 diamond drilling holes amounting to 3,341 metres at Hopeavuori have been drilled with maximum depth of 75 to 100 metres.
Here are the assay results from some of the drilling sections
R305: 11.5 metres Intercept with gold grades of 19.4 grams per tonne, 30.6 metres downhole
R313: 10.7 metres intercept with gold grades of 14.4 grams per tonne, 4 metres downhole
R330: 3 metres intercept with gold grades of 7 grams per tonne, 22 metres downhole
The assay results confirmed the presence of high-grade, shallow mineralisation in the mining friendly jurisdiction. Dark Horse believes that the historical results may not be entirely compliant to the JORC 2012 code due to which the historical information may or may not be included in the future exploration or evaluation results and the estimation of JORC 2012 code compliant mineral reserves and resources.
Share Purchase Plan Closing on 15 July 2020
Dark Horse reiterated that the explorer has successfully raised $675,000 through the recently concluded placement and is currently raising more funds through the Share Purchase Plan (SPP), which is scheduled to close on 15 July 2020.
Proceeds from the capital raising would be utilised for the Hopeavuori drilling program, which is anticipated to commence following the permit transfer and settlement of acquisition in September/October 2020. All eligible shareholders may buy shares up to a value of $30,000 to raise another $750,000 (before costs). Dark Horse may accept oversubscriptions of up to another $250,000, further increasing the fund raising to $1 million value.
DHR closed at $0.002 a share on 8 July 2020, with a market capitalisation of $5.89 million.