Daulton Capital Corp. is a natural resource finance company focused on precious and base metals, as well as oil and gas opportunities. Management’s objective is to option or joint venture projects with both major and junior natural resource companies to properly exploit the potential of each project.
The company announced today that it has completed final negotiations on the Balarat property in compliance with the original agreement and acquired an additional 58 claims on the property, bringing the claim total to 96. The Balarat claim block is situated 3 miles southeast of Underworld Resources’ Black Fox property. Underworld Resources was recently acquired by Kinross Gold in a deal valued at $139.2 million.
The combined claim block covers an area of more than 18 square kilometers. The claims – bordered by the Yukon River, Brittania Creek and straddling Balarat Creek – were historically significant placer gold producing creeks in the original Klondike gold rush in 1897. Since that time, over 13 million ounces of gold has been produced. The location of the claims in addition to silt sample data of the property by the Geological Survey of Canada has put the company into what the management believes is a “very strategic and enviable position”.
Daulton Capital has the option to earn 100% interest in the property from Dawson City local prospector, Shawn Ryan. Mr. Ryan is credited with the initial discovery on Underworld’s valuable White Gold property. Daulton can gain the 100% interest by making staged cash payments and issuing common shares of the company on or before August 20, 2013. Mr. Ryan will retain a 2% net smelter return interest that requires an advance royalty payment of $30,000 starting August 20, 2014. At the option of Daulton Capital, the net smelter return interest may be reduced to 1% upon making a $2 million payment to Mr. Ryan.