TSX-V-listed copper and gold developer Sanatana Resources will acquire the Gold Strike One project, in Yukon, Canada, as well as the Abitibi property, in Quebec.

The proposed acquisition constitutes a reverse takeover, as confirmed by a purchase agreement signed by Sanatana and Lireca and Florin Resources – together Florin Group – on July 4.

The transaction represents a significant mineral tenure package for Sanatana and, once completed, will greatly expand the company’s presence in the Rogue Plutonix Complex, in Yukon, a region that has garnered substantial recognition for its geological potential.

The Gold Strike One project comprises 107 contiguous quartz mineral claims in a 2 230 ha area adjacent to the Snowline Valley deposit, which has a measured and indicated resource of 204-million tonnes grading 1.21 g/t, for 7.9-million ounces of contained gold.

Lireca conducted exploration on the project in 2022 and 2024, which included an airborne LiDAR survey and geological mapping, as well as rock, soil and silt sampling.

In turn, the Abitibi property is located in the Northern Abitibi Greenstone Belt, which has various historical mine sites.

The Abitibi property comprises 101 mining claims held in two non-contiguous parcels, spanning 5 618 ha.

Sanatana plans to undertake an exploration programme later in the year, comprising of infill soil and rock sampling, as well as geophysics, to enhance its understanding of geochemical anomalies generated from Lireca’s prior work programmes.

The acquisition transaction will involve Sanatana paying Florin Group $2-million in cash and issuing it about 25-million common shares, while a 2% net smelter return royalty will become effective in future.

Florin Group has made notable discoveries and project advancements in the last 20 years, with a portfolio of projects across Canada.

Sanatana has advised that its name will change to Gold Strike Resources Corporation following the transaction.

Meanwhile, Sanatana also announced two private placements for cumulative gross proceeds of $5.2-million from the sale of three-million common shares of the company and up to 5.8-million units.

The units consist of one common share and one-half of one share purchase warrant, with the warrant entitling the holder to purchase one additional common share at a price of $0.95 apiece.