FSXLF - Great Pacific Gold Completes Acquisition of Wild Dog Resources Inc. | Benzinga

VANCOUVER, British Columbia, Sept. 21, 2023 (GLOBE NEWSWIRE) -- Great Pacific Gold Corp. ("Great Pacific Gold," "GPAC," or the "Company") (TSXV:GPAC) (OTCQX:FSXLF) (Germany: 4TU) is pleased to announce that it has completed its acquisition of Wild Dog Resources Inc. ("WDR") pursuant to the terms of an amalgamation agreement (the "Amalgamation Agreement") with 15103452 Canada Inc., a wholly-owned subsidiary of GPAC ("GPAC Sub"), and WDR.   WDR owns and/or has the right to earn an interest in three (3) separate high-grade gold-copper mineral properties located in Papua New Guinea ("PNG"): the Wild Dog Project, the Arau Project and the Kesar Creek Project (collectively, the "WDR Properties") through Exploration Licenses ("EL") and Exploration License Applications ("ELA").

Highlights of Acquisition:

• 2166 sq. km land position assembled via the acquisition of interests in a variety of ELs and ELAs
• includes 614 sq. km project contiguous with and SE of K92 Mining Inc. exploration tenements
• includes 130 sq. km project contiguous with and NW of K92 Mining Inc. tenements, 10 km from mining operations
• PNG ELs and ELAs contain multiple high priority gold and copper targets

Bryan Slusarchuk, CEO of GPAC, states, "We are pleased to diversify our portfolio with these high-quality gold and copper assets in PNG. With the financial and technical experience of various team members in PNG, we are in an excellent position to unlock the potential upside of these high-grade assets. We look forward to building on the excellent work that WDR has completed on multiple high priority gold and copper drill targets across the land package."

Terms of the Acquisition

Pursuant to the Amalgamation Agreement, in consideration of WDR:

• The shareholders of WDR (the "WDR Shareholders") received an aggregate of approximately 16,161,441 common shares of GPAC (the "Common Shares"), and each WDR Shareholder received one (1) Common Share for every 7.028 WDR Shares held (the "Exchange Ratio") (rounded down to the nearest whole number of Common Shares).
  
  
• The Common Shares issued to the WDR Shareholders are subject to voluntary restrictions on resale, of which 33.3% of the Common Shares will not be subject to restrictions on resale, 33.3% of the Common Shares will be subject to restrictions on resale for a period of three (3) months following closing of the Acquisition ("Closing") and 33.4% of the Common Shares will be subject to restrictions on resale for a period of six (6) months following Closing.
  
  
• The warrantholders of WDR (the "WDR Warrantholders") received an aggregate of approximately 526,892 Common Share purchase warrants (the "Warrants"), and each WDR Warrantholder received Warrants exercisable to acquire such number of Common Shares as is equal to the number of WDR Shares issuable under each such WDR Share purchase warrant (a "WDR Warrant") previously held by such WDR Warrantholder multiplied by the Exchange Ratio (rounded down to the nearest whole number of Common Shares) at an exercise price per Common Share equal to the exercise price of such WDR Warrant per WDR Share divided by the Exchange Ratio until the expiry time of such WDR Warrant.
  
  
• The optionees of WDR (the "WDR Optionees") were granted an aggregate of approximately 1,553,679 stock options of GPAC (the "Options"), and each WDR Optionee was granted Options exercisable to acquire such number of Common Shares as is equal to the number of WDR Shares issuable under each such stock option of WDR (a "WDR Option") previously held by such WDR Optionee multiplied by the Exchange Ratio (rounded down to the nearest whole number of Common Shares) at an exercise price per Common Share equal to the exercise price of such WDR Option per WDR Share divided by the Exchange Ratio until the expiry time of such WDR Option.
  

Immediately prior to Closing, WDR had a working capital of C$1,000,000, excluding payments due prior to Closing under the agreements relating to the WDR Properties, payments made to satisfy all accrued fees and termination benefits under the executive compensation agreements and payments of corporate and legal costs in the ordinary course of business.

On Closing, GPAC appointed Iain Martin, a director of WDR, as a director of GPAC.

Information Concerning the WDR Properties

The WDR Properties comprise of a 2,166 sq. km mineral exploration land package in PNG consisting of two ELs and multiple ELAs.

Figure 1. Papua New Guinea Project Location Map

The Wild Dog Project

The Wild Dog Project consists of one EL and one ELAs (ELA 2516 and EL 2761) totalling 1424 sq. km, which are located on the island of New Britain and are approximately 50 km southwest of Rabaul and Kokopo, PNG.

The Wild Dog Project occurs within a major NNE trending structure of at least 26 km in length which transect apparent volcanic caldera structures and intrusions. During the Mio-Pliocene at least three volcanic centres, known as the Nengmutka, Keravat and Sikut calderas, were localised along this horst and graben zone. This structural corridor constitutes an epithermal and porphyry hydrothermal-magmatic mineralized field.

The Nengmutka Caldera, which hosts the Wild Dog deposit, is characterised by a suite of calc-alkaline andesite breccia and ash flow tuff known as the Nengmutka Volcanics (Lindley, 1988). This formation has been mapped over an area of 600 sq. km. Tonalite of the Arabam Diorite intrudes the volcanic sequence and appears to be partly coeval with the caldera related volcanism.

The precious metal prospects are associated with epithermal type veining that contain gold-silver-telluride (Au-Ag-Te) mineralisation. Gold and silver occur as native metals and as telluride minerals. Porphyry copper-gold type mineralization also occurs associated with these intrusion centres that usually underly the epithermal systems. The whole of the recognised belt is held within the Wild Dog tenements.

Within the central part of the Wild Dog project, a significant structural corridor called the "Wild Dog – Gunsap Corridor" occurs. The corridor is at least 15 km long and up to 4 km wide and hosts at least three porphyry copper-gold prospects and several epithermal gold deposits and prospects.

The original Wild Dog epithermal gold deposit occurs within the "Wild Dog – Gunsap Corridor" in the central part of the tenements. It was discovered in 1983, with exploration including extensive mapping, trenching, rock sampling and drilling between 1983 and 2005 by various explorers. New Guinea Gold Limited operated a small open pit mining operation from 2007 and 2011. No exploration has occurred since the closure of the mine.

Figure 2. Wild Dog Project Location and Tenements Maps

Historical work completed by a previous operator returned significant gold assays. Channel sampling at the Kavursuki Prospect yields 4m at 9.41 g/t Au and at the Kargalio Vein 6m at 11.5 g/t Au.

Drilling of the Kavursuki Prospect by previous explorers, located within the Wild Dog Zone and north of the former Wild Dog mine, also yielded positive high-grade results.

Table 1 – Kavursuki Prospect Significant Drill Intercepts

Apart from the drilling conducted at the former Wild Dog gold mine there remain several drill intercepts that require further exploration outside of the mine environment as tabulated below, apart from the various trenching and channel sampling targets.

Table 2 – Wild Dog Prospect Area Significant Drill Intercepts

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