Vancouver – Demonstrating the feverish excitement around the Yukon, Wolverine Minerals’ (WLV-V) share price spiked on news that it had secured a large block of property in the territory.
The company has signed on to earn a 100% interest in 21 prospects covering more than 325 sq. km from Strategic Metals (SMD-V), which openly advertises properties for sale or option on its website.
The prospects are spread between the Dawson Range gold belt of west-central Yukon and the Finlayson district of eastern Yukon. Wolverine has yet to provide more specific details about the properties but assures in a release that it will do so shortly. The company plans to focus on gold exploration.
Wolverine’s share price jumped 15.5¢ or 67.4% to close at 38.5¢ on the news, with roughly 1.1 million shares traded. Strategic Metals was up 14¢ or 12.2% on the day to close at $1.29.
The company’s current holdings consist largely of a 13,800-ha claim block northwest of Pemberton, British Columbia. According to filings, the company did not spend any money on exploration in the last quarter.
Wolverine can earn into the Yukon properties by paying $100,000 and issuing Strategic shares equal to 19.9% of its outstanding share capital after completing a $2-million financing. The company will then have to pay a further $2.9 million over three years. Strategic will retain a 2% net smelter return royalty on any precious metal produced from any of the properties and 1% royalty on any other metal or minerals produced.
Concurrently, Wolverine announced a private placement of 5 million flow-through shares at 20¢ and a further 5 million units at 20¢ consisting of one share and one half-warrant. Each whole warrant can allows the purchase of an additional share at 35¢ for 18 months. The company currently has 16.8 million shares outstanding.
Be the first to comment on "Wolverine sinks claws into the Yukon (September 16, 2010)"