VANCOUVER -- Demonstrating the feverish excitement about 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 provided few details about the properties but assures in a release that it will do so shortly. The company plans to focus on gold exploration on claims.
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.
Wolverine's current holdings consist largely of a 138-sq.-km claim block northwest of Pemberton, B.C. According to filings, the company did not spend any money on exploration in the last quarter.
The company 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 metals produced from any of the properties and 1% royalty on any other metal or mineral 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 a half warrant. Each whole warrant allows the purchase of an additional share at 35¢ for 18 months. The company has 16.8 million shares outstanding.
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