Treasury Metals has struck gold in the Dryden area.
The company is acquiring a major gold property next to its proposed Goliath Gold mine project.
Toronto based Treasury has signed a share purchase agreement with First Mining Gold of Vancouver to purchase the Goldlund Gold Project.
The 280-square-kilometre property is directly northeast of the Goliath project, 20 kilometres east of Dryden, with only two kilometres separating the properties.
The major transaction brings roughly 3.1 million ounces of combined gold into an integrated development.
The deal is scheduled to close in mid-August.
Treasury Metals has received federal environmental approval to proceed with the Goliath project and is now working on obtaining provincial permits.
Goldlund hosts a large near-surface gold resource estimated to contain 809,200 ounces of gold in the indicated category, plus 876,954 ounces of gold in the inferred category.
Treasury officials say the property holds great potential for more discoveries.
Under the terms of the agreement, First Mining will receive 130 million common shares of Treasury, 35 million common share purchase warrants of Treasury and a cash payment of $5 million.
