Signal Gold Inc. (TSX: SGNL) declared that it had obtained a 100% interest in 6 exploration licenses near the Goldboro Mineral Resource of its Goldboro Gold Project in Nova Scotia, Canada. This acquisition has caused Signal Gold to expand its exploration license area from 599 to 3,756 hectares. This development is a major change for the project since these exploration licenses encompass the surface area necessary for much of the project’s key infrastructure. Additionally, it provides further exploration opportunities in the region of the Goldboro Mineral Resource, as the extra licenses include the strike continuity of the host structure of the Goldboro Deposit, bringing the total known and probable strike length to 7.5 kilometers. 

The Company acquired exploration licenses from Meguma Gold Inc. in exchange for a total of $700,000, which was split between $400,000 in cash and the issue of 900,901 common shares of Signal Gold at $0.333 each, determined by the average 20-day volume weighted price as of November 16, 2022. Furthermore, the Company gave Meguma Gold Inc. a 1.0% royalty over the licenses, with a maximum payment of $1,000,000, and assumed an existing 2% gross royalty applicable to five of the licenses it acquired.

Acquiring these exploration licenses marks a major milestone in the progress and expansion of the Goldboro Gold Project, following the Environmental Assessment Approval on August 2, 2022, and the beginning of exploration drilling west of the existing Goldboro Mineral Resource. These exploration licenses signify a considerable increase in the Company’s mineral property, which is necessary for essential infrastructure. Signal Gold now has a much larger area than before, containing 3.2 kilometers of extra strike potential for a total of 7.5 kilometers of the known and prospective line of the strike, affording a great opportunity for more exploration upside and growth in mineral resources, said Kevin Bullock, President, and CEO, Signal Gold Inc.