06:33 AM EST, 12/17/2024 (MT Newswires) -- GFG Resources ( GFGSF ) late on Monday said it has closed the sale of the Rattlesnake Hills gold project to Axcap Ventures subsidiary Patriot Gold Vault for $3.3 million.

Patriot made a cash payment of $250,000 to GFG on signing the binding letter of intent, another $250,000 upon execution and delivery of a definitive agreement, and $1.2 million at deal closing.

Patriot also issued to GFG around 3 million Axcap common shares. Patriot will pay an additional $1 million in cash on Dec. 16, 2025.

Patriot will assume environmental liability for the project and take steps to have GFG's US$219,000 reclamation bond refunded.

If a National Instrument 43-101 resource estimate in the project reveals a mineral resource of greater than 3 million ounces of gold in a measured and indicated or inferred category, Patriot will pay to GFG a further $1 per total mineral resource ounce in cash or Axcap common shares.

Patriot will reimburse GFG for all costs and expenses relating to the project incurred from the date of the signed letter of intent to Dec. 16.

"Coupled with our recent warrant exercise, this deal significantly bolsters our balance sheet, enabling us to continue our aggressive exploration programs in Timmins at both the Aljo and Muskego targets," said GFG President and CEO Brian Skanderbeg.