Fin Resources Raises A$1.5M to Advance Drill-Ready Cabin Lake Gold Project in Canada
Fin Resources Limited has acquired a 100% interest in the drill-ready Cabin Lake Gold Project in Canada’s Northwest Territories, backed by a recent A$1.5 million capital raise to accelerate exploration activities.
- Acquisition of 100% interest in Cabin Lake Gold Project, Canada
- Cabin Lake offers high-grade, near-surface gold mineralisation with strong exploration potential
- A$1.5 million placement completed to fund exploration and corporate costs
- Deferred payments linked to exploration milestones and royalties retained by vendors
- Exploration at McKenzie Springs and Mt Tremblant projects limited due to funding constraints
Strategic Acquisition in a Tier 1 Gold Jurisdiction
Fin Resources Limited (ASX – FIN) has taken a significant step forward by acquiring a 100% interest in the Cabin Lake Gold Project, located in the prolific Archean Slave Craton of Canada’s Northwest Territories. This region is renowned for its rich gold endowment, having produced over 14 million ounces historically, with another 10 million ounces under active exploration or development nearby.
The Cabin Lake Project is a fully permitted, drill-ready asset featuring high-grade gold mineralisation hosted within sulphide-rich lenses of the Bugow Iron Formation. The project’s structural setting and mineralisation style closely resemble the nearby Lupin Gold Mine, which boasts over 3.3 million ounces of gold at grades exceeding 10 grams per tonne.
Compelling Exploration Potential and Local Partnerships
Drilling to date has been limited to the upper 100 metres of the system, yet has returned consistently impressive intercepts, including intervals exceeding 30 metres at grades above 13 grams per tonne. The Arrow Zone stands out as the priority target, with mineralisation open at depth and along strike, offering a promising starting point for resource definition.
Importantly, Fin Resources benefits from strong relationships with the local Tłı̨chǫ Government, ensuring smooth access and collaboration for ongoing exploration. The project’s proximity to existing infrastructure and historical mining centres further enhances its development prospects and potential capital efficiency.
Capital Raising to Support Growth
To underpin the acquisition and exploration program, Fin Resources successfully completed a placement raising A$1.5 million at A$0.0065 per share. The funds are earmarked primarily for advancing drilling at Cabin Lake, as well as supporting exploration at the McKenzie Springs and Mt Tremblant projects, alongside transaction and working capital costs.
While exploration at McKenzie Springs and Mt Tremblant was limited during the quarter due to funding constraints, the company’s focus remains on preserving cash and maintaining tenement status, positioning itself for future opportunities as market conditions improve.
Acquisition Terms and Future Milestones
The acquisition involves an upfront payment of A$200,000 in cash plus 30 million Fin Resources shares, subject to shareholder approval and escrow. Deferred consideration of up to A$450,000 is tied to key milestones, including drilling success, resource definition, and completion of a pre-feasibility study demonstrating robust project economics.
Vendor alignment is further ensured through a 5% net profit royalty payable after capital recovery, alongside a 2% net smelter royalty to Silver Range Resources Ltd, with options for Fin Resources to buy back portions of these royalties under certain conditions.
Financial Position and Outlook
Fin Resources closed the quarter with A$270,000 in cash, having spent A$312,000 on exploration activities. The company remains committed to a minimum 1,500-metre drilling program at Cabin Lake within two years, aiming to deliver a maiden JORC-compliant mineral resource estimate.
With a clear pathway to advance a high-grade gold project in a stable jurisdiction, backed by committed funding and strong local partnerships, Fin Resources is poised to unlock value for shareholders in the coming quarters.
Bottom Line?
Fin Resources’ acquisition and capital raise set the stage for a pivotal exploration phase at Cabin Lake, with market eyes on upcoming drilling results and milestone achievements.
Questions in the middle?
- Will Fin Resources meet the aggressive drilling and resource milestones within the set timelines?
- How will the company manage funding and operational risks given current cash reserves?
- What impact will the royalties and deferred payments have on the project’s long-term economics?