Falcon Gold Director & CEO Karim Rayani
Falcon Gold (TSXV:FG,FWB:3FA,OTCQB:FGLDF) CEO Karim Rayani gave an update on the company’s projects and its recent spinout transaction.
“The main reason why we’re doing the spinout of our holdings in Argentina is to separate processes,” Rayani said. “The new company will operate and run that division, and therefore we don’t need as much capital moving into the year.”
Falcon Gold announced its intention to spin out its rights, title and interest to some mineral claims at the Esperanza project in Argentina to Latamark Resources, the company’s fully owned subsidiary. Rayani said the spinout is a strategy to protect share capitalization.
“We are funded,” he said. “We can always use money. We run on a very low burn rate. Most of our properties don’t have any property payments. We essentially put 90 percent of any funds that we receive into the ground. So in a short period of time, we’ve done quite a large amount of work.”
Falcon is also advancing its flagship project located in Central Canada in the Atikokan mining camp. The upcoming Phase 3 drill program will be increased to 2,000 meters under a game plan that will define the project’s resources. The company also completed option and work requirements on the project to earn its 100 percent interest.
“The Central Canada project is still our flagship, and what really got me excited about it is we’re surrounded by three or four multimillion ounce deposits,” he said. “The infrastructure was there. And the geology puts us in the perfect ideal situation. We’ve got Agnico Eagle’s (TSX:AEM,NYSE:AEM) mill, which is right next door. They’re planning to put that into production and need high-grade feed. I believe that we’re sitting on a multimillion ounce discovery here. We’re now out stepping and going at a 45 degree angle. And if we’re able to get some similar grades and widths, we’ve essentially just doubled the size of the deposit.”
Rayani believes that the company is in an ideal situation after it made several acquisitions this year, including the Valentine Gold South project and the Victoria West project.
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