Junior American Battery Metals has entered into a nonbinding letter of intent (LoI) to acquire Bayshore Minerals, a private company and its 100%-owned Elk gold mine project, in British Columbia.
The project is host to a National Instrument 43-101-compliant resource estimate comprising 442 600 oz of gold in measured and indicated categories and 88 000 oz of gold in the inferred category.
The project currently has a 'small mines' permit under the care and maintenance provision, has bonding in place for an exploration permit and an effluent discharge permit.
American Battery notes that Bayshore has been focused on reactivating and expanding the scope of the mine permit for a much larger operation.
“The Elk Gold project is known as a high grade gold deposit that has been the subject of significant expenditures including over 125 000 m of drilling property-wide, over 110 00 m of which forms the basis, confirming the project's high-grade resource estimate. Given the extensive exploration and development to date, we see the potential for near-term production coincident with the recent macro events which support an improving gold market,” says president and CEO Jeremy Poirier.
Under the terms of the LOI, American Battery would issue 27-million shares in exchange for all the issued and outstanding shares of Bayshore.
Completion of the transaction is anticipated to occur in the first quarter.