Manhattan Acquires Hook Lake Project with 285,000 oz Historical Gold Estimate
Manhattan Corporation has secured a binding agreement to acquire the Hook Lake Project in Nunavut, Canada, featuring a high-grade gold deposit and polymetallic prospects. The company aims to validate historical estimates and advance exploration with a seasoned team onboard.
- Acquisition of 100% interest in Hook Lake Project, Nunavut
- Historical non-JORC estimate of ~285,000 oz gold at Turquetil Lake
- Appointment of industry veterans Gavin Rezos and Eric Sondergaard
- Project includes multiple gold and VMS polymetallic prospects
- Plans to verify and upgrade resource estimates within 12-24 months
Strategic Acquisition in a Tier 1 Jurisdiction
Manhattan Corporation Ltd (ASX:MHC) has entered into a binding agreement to acquire 100% ownership of the Hook Lake Project, located in the eastern Nunavut region of Canada. This acquisition brings to Manhattan a significant land package of 423 square kilometres within the Archean Greenstone Belt, a geological setting renowned globally for hosting prolific gold deposits.
The Hook Lake Project notably includes the Turquetil Lake gold deposit, which boasts a historical, non-JORC compliant estimate of approximately 3.4 million tonnes grading 2.38 grams per tonne gold, equating to around 285,000 ounces. Despite the estimate’s historical status and the need for modern validation, it represents a substantial exploration target with mineralisation open in multiple directions.
Experienced Leadership to Drive Exploration
Manhattan is bolstering its leadership with the appointment of Gavin Rezos as a non-executive director and Eric Sondergaard as technical advisor. Mr Rezos brings a track record of delivering shareholder value, having been the founding chairman of Vulcan Energy Resources, which grew from a $10 million market cap to over $1 billion. Mr Sondergaard, a registered Professional Geoscientist, has deep operational experience in Nunavut, including recent success at White Cliff Minerals’ Rae copper project.
Exploration Upside Across Multiple Prospects
Beyond Turquetil Lake, the Hook Lake Project hosts several other prospects, including polymetallic volcanogenic massive sulphide (VMS) systems at Heninga Lake and Spi Lake, and gold occurrences at Seahorse Lake, Red Flats, VG, and Spook prospects. Historical drilling and sampling have returned encouraging grades of gold, copper, zinc, silver, and lead, underscoring the district-scale potential of the project.
Manhattan plans to leverage modern exploration techniques such as geophysical surveys and targeted drilling to verify and expand upon the historical data. The company aims to deliver a maiden JORC-compliant mineral resource estimate for Turquetil Lake within 12 to 24 months, while also advancing other prospects towards drill testing.
Transaction Terms and Next Steps
The acquisition consideration includes $185,000 in cash, 200 million shares, 150 million performance rights, and a 2% net smelter royalty payable to the vendor group, which includes Mr Sondergaard and a company related to Mr Rezos. The transaction is subject to customary conditions, including shareholder approval and an independent expert’s report.
Manhattan has engaged BDO Corporate Finance to prepare the expert report and anticipates shareholder meetings and completion by August 2025. The company is well-funded to commence exploration activities pending regulatory permits.
A Promising Chapter in Nunavut Gold Exploration
Situated near major gold mines such as Agnico Eagle’s Meliadine Mine and the Back River Gold District, the Hook Lake Project offers Manhattan a foothold in a proven gold province with significant underexplored potential. The combination of historical data, a large landholding, and a strengthened management team sets the stage for a potentially transformative exploration campaign.
Bottom Line?
Manhattan’s Hook Lake acquisition positions it to unlock significant gold and copper value in a globally respected mining jurisdiction, with exploration milestones set to define its near-term trajectory.
Questions in the middle?
- Will Manhattan successfully convert the historical non-JORC resource into a JORC-compliant mineral resource?
- How will the newly appointed board and technical advisors influence exploration strategy and capital allocation?
- What are the timelines and regulatory hurdles for obtaining land use and water permits to commence drilling?