Total Metals enters LOI for High Lake, West Hawk Lake
Executive Summary
- Total Metals Corp. signed a binding LOI to acquire 100 % of the High Lake and West Hawk Lake gold properties for a total consideration of $9.25 million (cash + equity).
- The acquisition is being funded by a concurrent non‑brokered private placement expected to raise up to $10 million at $0.60 per unit, consisting of LIFE and non‑LIFE units with attached warrants.
- High Lake hosts a NI 43‑101 compliant resource (≈152k t @ 9.38 g/t Au indicated; ≈287k t @ 10.43 g/t Au inferred) and recent drill intercepts exceeding 140 g/t Au, underscoring high‑grade potential.
Key Details
- Consideration: $7.25 M cash payable at closing + $2 M of Total Metals common shares issued at $0.60 per share (same price as the equity financing).
- Closing Condition: Completion contingent on raising cash consideration through the described equity offering; expected to close on or before 2025‑10‑31, subject to customary approvals.
Equity Private Placement
* Up to 15,833,333 “LIFE” units and 833,333 non‑LIFE units at $0.60 per unit → gross proceeds ≈ $10 M.
Each LIFE unit = 1 Total share + 1 common share purchase warrant (exercise price $1, 36‑month term).
Each non‑LIFE unit = 1 Total share + 1 warrant (exercise price $0.90, 36‑month term).
* Units offered to accredited investors (NI 45‑106) and may be sold offshore/under Rule 144A in the U.S.
Use of Proceeds | Allocation | Amount | |------------|--------| | Cash payment for acquisition (High Lake) | $7.25 M | | Finders’ cash fees (up to 8 % of proceeds) | ≤ $0.80 M | | Electrolode drilling (8 holes @ 450 m, $400/m) | $1.44 M | | Electrolode soil sampling | $57.5 k | | Electrolode prospecting (grab samples) | $45 k | | General working capital | $387.5 k | | Indigenous engagement & permitting (Ontario) | $20 k |
High Lake Project – Resource Highlights
* Indicated: 152,000 t @ 9.38 g/t Au → 45,800 oz Au
Inferred:* 287,000 t @ 10.43 g/t Au → 96,200 oz Au (NI 43‑101, effective 2023‑04‑14)
Recent High‑Grade Drill Intercepts (High Lake)
* MLHL‑22‑06: 24.96 g/t Au over 14.90 m (incl. 43.22 g/t Au over 7.99 m)
MLHL‑22‑17: 148.37 g/t Au over 1.3 m (incl. 538 g/t Au over 0.3 m)
MLHL‑22‑28: 9.82 g/t Au over 9.75 m
* Additional extensions: MLHL‑23‑50 (13.96 g/t Au over 1.17 m), MLHL‑24‑53 (4.04 g/t Au over 2.25 m)
Metallurgy * Preliminary testwork shows ~85 % gold recovery via gravity concentration, indicating low processing risk.
West Hawk Lake – Recent Drill Intercepts
* MLWH‑22‑01: 22.17 g/t Au over 1.27 m (incl. 49.4 g/t Au over 0.55 m)
* MLWH‑22‑08: 19.40 g/t Au over 0.64 m
Strategic Rationale
* Proximity of the two properties enables potential central processing and access to six nearby gold mills.
* Both sites lie within 45–53 km west of Kenora, ON, with year‑round road, power, and gas infrastructure.
Exploration Timeline
* Up to $20 k allocated over the next 12 months for permitting, indigenous engagement, and consultation on High Lake & West Hawk Lake.
* Primary operational focus remains the Electrolode project during this period.
Notable Quotes
“This acquisition marks a pivotal moment for Total Metals, securing two highly prospective properties in a renowned mining district,” – Tyler Thorburn, President & CEO.
Safe Harbour statements included in the original release.