Key Gold Holding (CVE:KGH) has received approval from the TSX Venture Exchange for its previously announced acquisition of the Souart gold property, it said Tuesday.
In December, the gold and copper explorer said it agreed to buy the project, located in northwest Quebec, from arm's length vendors. Key Gold has now completed the purchase, and has paid $40,000, as well as issued 1.03 million common shares. It has also committed to spend $750,000 in exploration work over the next year.
If Key Gold decides to retain the property, it will be required to pay an additional $450,000 and issue another 4.47 million shares over the next three years, as well as spend a further $1.0 million in exploration over two years.
The Souart property, covering roughly 876 hectares, is in the vicinity of the Barry Lake Gold camp of West Central Quebec, home of the Barry Deposit, which has 269,000 tonnes at 4.10 g/t gold of indicated resources and 450,000 tonnes at 4.68 g/t gold of inferred resources.
A recent technical compilation report on the Souart project concluded the holding represents a "solid gold and base metal" exploration target, which warrants a series of exploration programs to assess the economic potential.
At this stage of exploration and with previous observations, the non-compliant resources for Souart are 564,000 tons at 6.2 g/t gold.
Key Gold said it has planned two phases of exploration campaigns for the property, including a 10,000 metre drill program.