Ready Set Gold Corp. (CSE:RDY) said it has further advanced the strategic review of its assets, financial position and structure as it seeks to position itself for future project and financing opportunities as it released an update on its Northshore Gold Project in northern Ontario.
On June 7, 2022, the company announced that it would be undertaking a mineral resource estimate (MRE) at Northshore. At the time, the company indicated that an additional 52 drill holes had been completed on the property but this figure did not include another 14 holes completed in 2021, taking the total number of drill holes completed since the historic 2014 estimate to 66.
As part of the MRE data verification process, the company retrieved and compiled all available historic drilling-related records and drill hole databases from a variety of sources.
READ: Ready Set Gold plans resource update on its Northshore project in Ontario; says it has made “significant progress” in defining a path forward
In June 2022, a consultant completed a field examination of drill sites and outcrops on the Northshore property and carried out a verification sampling program of drill core from a select number of drill holes located in the company's core storage facility in Schreiber, Ontario.
The company said it estimates completion and announcement of the MRE are still on track and will be followed by an independent technical report that will be filed within 45 days of announcing the results.
Helmo East Flanks
Ready Set Gold also said it has been informed by Netmizaaggamig Nishnaabeg (formerly, the Pik Mobert First Nation) that a number of unpatented claims within the Hemlo East Flanks project fall within a recently identified Core Cultural Area and that the nation will not support mineral exploration activity within this claim block.
It has been determined that 195 of the 209 unpatented claims for this project fall within the Core Cultural Area and Netmizaaggamig Nishnaabeg has requested that the company file an application to withdraw these claims.
"I am disappointed that we are in this position, but we are unequivocally supportive of the Netmizaaggamig Nishnaabeg First Nation's wishes and have filed an application to withdraw these claims. Plainly, there is work ahead for governments to incorporate the key elements of UNDRIP into legislation to provide industry with clearer guidelines going forward," Alexander McAulay, Ready Set Gold chief executive officer and director said in a statement.
The company has submitted the withdraw request and intends to maintain open dialog with the Netmizaaggamig Nishnaabeg about the potential for additional projects in the region. The withdrawal from this project further focuses the company, enhances First Nations relations, and conserves capital, it added.
Share Consolidation
Ready Set Gold also said its board of directors has approved a share consolidation of all of its issued and outstanding securities on a 5-for-1 basis under the policies of the Canadian Securities Exchange.
Currently, the company's authorized share capital is an unlimited number of common shares without par value, of which 30,385,170 shares are issued and outstanding with a further 23,155,967 shares reserved for issuance upon the exercise of outstanding warrants. Following consolidation and subject to rounding, the company will have issued and outstanding 6,077,034 common shares, subject to shares being issued under outstanding warrants being exercised prior to the effective date of the consolidation.
The company said its board of directors believes that the share consolidation will provide the company with increased flexibility to seek financing opportunities and strategic acquisitions.
CEO McAulay noted: "The changes undertaken by the company will allow us to move forward with a keener asset focus, stronger First Nation relationships, and more nimble capital structure."
"The company will continue to focus on assessing its current portfolio and will be forthcoming with an updated resource estimate for the Northshore project in the near term, which will include 66 drillholes completed between the publishing of the last estimate and current date.”
"We will also continue to engage with First Nations about new project opportunities given our strong commitment to work with these communities to create economic partnerships, while acknowledging and respecting historic cultural claims," he concluded.
Ready Set Gold owns a 100% interest in the Northshore Gold Project, located in the Schreiber-Hemlo Greenstone Belt near Thunder Bay, Ontario which is prospective for gold and silver mineralization.
Contact the author at jon.hopkins@proactiveinvestors.com