10:29 AM EDT, 08/27/2024 (MT Newswires) -- Fancamp Exploration ( FNCJF ) and Lode Gold (LOD.V) have formed a strategic alliance to advance the exploration and development of certain mineral properties in the Yukon and New Brunswick.

A statement from Lode said the alliance will see $3.5 million invested into Lode Gold and its subsidiary Gold Orogen. As part of this agreement, a new joint venture entity will be created to hold Lode Gold's McIntyre Brook property and Fancamp's Riley Brook property (both in New Brunswick). Fancamp and Gold Orogen will each own 50% of the JV. Fancamp will be the operator and retain a 2% net smelter returns royalty on Riley Brook.

Lode Gold will also transfer to Gold Orogen both its Golden Culvert and Win mineral properties in southeastern Yukon, which will not be part of the JV.

Fancamp will be a key shareholder of Lode Gold and will invest $500,000 in exchange for 14.3 million special warrants. Fancamp will also invest $3 million in Gold Orogen, for a 20% stake in the subsidiary. Of this sum, $2 million will be designated as flow-through eligible spend in Yukon and New Brunswick. Gold Orogen will raise $1.5 million via private placement.

Lode Gold will undertake a spin-out transaction of Gold Orogen for the latter to become a reporting issuer. Lode Gold shareholders will be entitled to shares of Gold Orogen.

Fancamp was last seen unchanged at $0.075 on the TSX Venture Exchange, while Lode Gold was up $0.005 to $0.035.

Price: 0.08, Change: +0.01, Percent Change: +6.67