Gold Mining Stocks Surging While Gold Surpasses $3,950 an Ounce as Mining Operations Increase

Executive Summary

• Sanatana Resources Inc. completed a reverse‑takeover acquisition of the Gold Strike One Project (Yukon) and the Abitibi Property (Quebec) from LIRECA Resources Inc. and Florin Resources Inc.
• Consideration consisted of 24,745,620 common shares plus $1.8 M cash for Gold Strike One and $200,000 cash for the Abitibi Property; additional escrowed securities (33.2 M shares, 271,428 options, 1.57 M warrants) were deposited.
• Royalty agreements were executed providing a 2% NSR royalty on Gold Strike One and a 3% NSR royalty on the Abitibi Property; minority shareholder approval was obtained via written consent following exemptive relief from the OSC.

Key Details

• Acquisition Structure – Reverse Takeover under TSX‑V Policy 5.2; non‑arm’s‑length, related‑party transaction.
• Cash Consideration – $1,800,000 paid to LIRECA for Gold Strike One; $200,000 paid to Florin for the Abitibi Property.
• Equity Consideration – 24,745,620 Sanatana common shares issued to LIRECA as part of the purchase price.
• Escrowed Securities – 33,240,458 common shares, 271,428 stock options (exercisable for common shares), and 1,573,571 warrants (exercisable for common shares) placed in escrow per TSX‑V policies.
• Royalty Agreements – 2% net smelter return (NSR) royalty + annual advance royalty on Gold Strike One; 3% NSR royalty on the Abitibi Property.
• Bonus Payments – Additional share consideration may be triggered if Sanatana publicly announces a NI 43‑101 resource estimate containing gold ounces for any portion of the acquired assets.
• Shareholder Approval – Written consents representing 52.31% of issued and outstanding shares (excluding LIRECA‑related holdings) were obtained after OSC exemptive relief on September 25, 2025.
• Strategic Rationale – Gold Strike One lies <500 m south of Snowline Gold Corp.’s Valley Deposit pit; Sanatana expects initial exploration results for Gold Strike Two within 4–6 weeks and is evaluating further acquisitions.
• Related Market Updates – Brief mentions of other Yukon mining news (Snowline Gold PEA, Prospector Metals drill results, White Gold private placement) are included for context but do not affect the material transaction.

Notable Quotes

• Peter Miles, CEO, Sanatana Resources: “With the closing of the acquisition of Gold Strike One, the Company strengthens its suite of projects… We look forward to the exploration of both Gold Strike One and Gold Strike Two…”
• John Fiorino, Principal, LIRECA Group: “By accepting approximately 90% of the consideration for the transaction in escrowed equity of Sanatana, the LIRECA Group continues to demonstrate its confidence in the projects and our alignment with long‑term shareholders.”