- Pursuit Minerals (PUR) is down as much as 23 per cent today after announcing it has terminated the acquisition of the Buck Mountain Gold Project
- In mid July, Pursuit entered a binding option agreement with Golden Buck Ventures (LLC) and Moreton Gold to acquire Buck Mountain for US$95,000 (around A$132,303)
- Pursuit has already made a US$20,000 (roughly A$27,853) payment for exclusive due diligence until September 30, 2020 but was unable to negotiate an extension
- When requesting an extension Moreton Gold agreed but Golden Buck did not and didn’t give any reason as to why
- As a result, Pursuit had no choice but to terminate the acquisition
- Pursuit is still down 23.1 per cent with shares currently trading for one cent each
Pursuit Minerals (PUR) is down as much as 23 per cent today after announcing it has terminated the acquisition of the Buck Mountain Gold Project.
On July 17, Pursuit entered a binding option agreement with Golden Buck Ventures (LLC) and Moreton Gold to acquire the Arizona project for US$95,000 (around A$132,303).
Pursuit has already made a US$20,000 (roughly A$27,853) payment for exclusive due diligence until September 30, 2020.
However, due to being unable to negotiate an extension to the due diligence period, Pursuit has chosen not to carry on with the acquisition.
During the due diligence it did undertake, Pursuit was able to confirm the presence of gold in alluvial gravels close to the surface.
21 soil samples were collected and of these 21 only eight returned gold values above 0.001 ppm (parts per million) with a maximum value of 0.004 ppm.
Pursuit then proposed to the vendors to dig eight pits within the area to take bulk samples up to 15 feet.
These bulk samples will be submitted for processing with aims to extract free gold using gravity separation methods.
Due to a lengthy time frame needed to obtain approval for the extraction, Pursuit requested an extension to the due diligence period from both Golden Buck and Moreton Gold.
Moreton Gold agreed to this extension but Golden Buck did not and didn’t give any reason as to why.
As a result, Pursuit had no choice but to terminate the acquisition.
Pursuit is still down 23.1 per cent with shares trading for one cent each at 1:38 pm AEST.