Fort Rupert shareholders approve Kingswood takeover

Shareholders of Fort Rupert Resources have cleared the way for a takeover by Kingswood Explorations (ASE).

Under the deal, which is subject to regulatory approval, Kingswood will issue one of its shares for every 2.5 Fort Rupert shares. More than 96% of the private company’s shareholders, well over the required number, have accepted Kingswood’s offer.

Fort Rupert has a 50% interest in the Lac Marcaut property 200 km north of Matagami, Que. Samples taken from a sulphide-rich exhalite exposed on the property for a strike length of 260 ft. have assayed as high as 3.74 oz. gold per ton and 5 oz. silver.

Teck Explorations, a unit of Teck (TSE), can earn a 70% interest in Lac Marcaut by spending $2.5 million on exploration and making cash payments totalling $300,000.

Surface stripping and diamond drilling are scheduled to begin this spring. Meanwhile, drilling is under way on Kingswood’s 60-claim block at Eastmain, Que. The program is designed to test a suite of geophysical anomalies.