Troilus Gold divests non-core Mike Lake project to Prospector Metals

Troilus Gold to sell Mike Lake project to Prospector Metals, gaining 20% stake and up to $15m milestone payment. Exciting potential ahead!

Canadian junior mining company, Troilus Gold, has entered into an agreement to sell its non-core Mike Lake project in Yukon, Canada to Prospector Metals. As part of the deal, Troilus Gold will receive 8.6 million shares of Prospector Metals, giving them a nearly 20% stake in the company, as well as a milestone payment of up to C$20m ($15m).

The sale of the Mike Lake project will allow Troilus Gold to focus on its flagship Troilus gold project in Quebec, Canada, while still maintaining a stake in the potential success of the Mike Lake project under Prospector Metal's leadership.

The Mike Lake project, which was acquired by Troilus Gold in 2017, comprises 319 mineral claims spanning approximately 6,600ha and is located 80 kilometers northeast of Dawson City. Prospector Metals sees the project as an exceptional opportunity due to its high-grade, undrilled surface occurrences and the company's increased knowledge of gold deposits in Yukon since the last exploration work in 2008.

Following the completion of the transaction, Prospector Metals plans to initiate exploration activities at the Mike Lake project, building upon the positive findings from previous exploration work. Troilus Gold CEO, Justin Reid, expressed satisfaction with the agreement and believes that Prospector Metals is well-suited to unlock the potential of the claims, citing recent discoveries in the region as evidence of its excellent potential.

The completion of the transaction is contingent on Prospector Metals successfully conducting a simultaneous equity financing, generating total proceeds of at least C$1m. This move is expected to streamline Troilus Gold's portfolio of properties and allow the company to fully concentrate on the development of its flagship Troilus gold project.