Update: On September 7 Golden Dawn Minerals announced it closed the acquisition of the former Lexington and Golden Crown mines and a 200-tpd gravity-flotation plant from Huakan International Mining. The two mines, as well as Golden Dawn’s Boundary Falls project and past-producing May Mac mine, lie within a 15-kilometre radius of the mill.
by Greg Klein | September 6, 2016
Active in a number of fronts in southern British Columbia’s historic Greenwood district, Golden Dawn Minerals TSXV:GOM moves closer to its goal of re-opening former mines. Last week the company signed a definitive agreement to help finance a 100% option on Greenwood project assets that include the former Lexington and Golden Crown mines as well as a mill. The company has also resumed drilling its nearby Boundary Falls project and plans drilling on the May Mac claims immediately north.
A convertible security from Lind Asset Management VI comes with a face value of US$2.4 million, which would bring net proceeds of C$2.4 million. Golden Dawn would use the money plus additional cash on hand to exercise its 100% option with Huakan International Mining. That would cost Golden Dawn C$3.35 million, including a remedial bond of C$450,000.
Boundary Falls drilling will initially test gold-silver quartz veins shown by historic workings on the property’s Amigo area, including the Glory Hole and #1 Tunnel. At May Mac, Golden Dawn has received a permit to build underground drill stations and drill the former mine’s #7 Adit.
In July the company closed the final tranche of a private placement totalling $425,000. Around the same time Golden Dawn signed a metal streaming LOI with RIVI Capital for the Lexington and Golden Crown projects.