District Metals (DMX.V) has announced it has sold its remaining 25% interest in the Bakar property on Vancouver Island to the 75% owner for 1.5 million shares of Sherpa II Holdings (SHRP.V). It has been an ordeal to get drill permits issued and as District Metals is focusing on its Swedish properties anyway, it only makes sense to sell the minority stake in Bakar. At the current share price of C$0.035 for Sherpa II, the 1.5 million shares represent a pro forma value of just over C$50,000.
Meanwhile, the company has retained a contractor to complete a helicopter-borne mobile magnetotellurics system survey at the Viken project. The MobileMT survey will consist of a two phased program aiming to complete 1,387-2,346 line kilometers at a 200 or 400 meter line spacing. The first phase will be completed to capture the conductive signature (the alum shale contains quite a bit of graphite which is a great conductor) of the mineralized Alum Shale. After completing this, the second phase of the MobileMT suvey will be completed over the remainder of the Viken property in an attempt to identify additional similar conductive signatures that could be earmarked for a future drill program.
Disclosure: The author has a long position in District Metals. District is a sponsor of the website. This post is for educational purposes only; be mindful investing in junior mining stocks is risky and you may lose your entire investment if things go wrong. Please read the disclaimer.
