The trading week may be coming to an end, but investors are going to continue to be diligent in their hunt for the latest stocks to track, and one of those could well be the Tonogold Resources Inc. (OTC: TNGL) stock. The company was in focus yesterday after it announced that it had inked a term sheet pertaining to the acquisition of 100% of the shares in JAG Minerals Pty Ltd. JAG Minerals Pty Ltd. also owned JAG Minerals USA Inc. in its entirety.
Tonogold Resources noted in the news release that the acquisition would help it speed up the development and eventual exploration of the Marysvale hard rock uranium/vanadium mine, the SKY project, and as many as 13 other higher-grade uranium/vanadium mines located across San Juan County, Utah, and Montrose County, Colorado. In the news release, the company noted that the property was situated adjacent to the central mining area. In that particular area, as much as 1.39 mlb of U308 had been produced at 0.22% from more than 10 mines between the years 1949 and 1996.
The Marysvale Project had been drilled from 1977 to 1981 by Phillips Uranium, and it should be noted that the project had a pre-2007 NI 43-101 resource. As many as 127 historical drill holes had been completed at the property by Phillips Uranium, Trigon Exploration, and Minex from 1977 through 2007.
The follow-up drilling that would be conducted by Tonogold Resources would be in order to confirm the resource estimates pre-2007 and also to test the new zones that had been identified. The company would complete the acquisition through the issuance of $4500,000 worth of Tonogold Resources shares. The deemed price of the shares would be the same as the VWAP (volume-weighted average price) for the 15 trading days ahead of the signing of the stock purchase agreement.
