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| Manhattan Corp |
ASX-listed explorer enters Canadian gold market with 3.4Mt legacy deposit in Nunavut.
Manhattan Corporation Ltd (ASX:MHC) shares surged over 64% following its announcement of a binding agreement to acquire the Hook Lake Project in Nunavut, Canada. The company will acquire 6106 Resources, a private entity controlled by Eric Sondergaard, in a deal comprising $185,000 cash, 200 million shares, and 150 million performance rights.
At the time of writing (May 12), Manhattan’s share price had jumped 47% to $0.028.
The 423 km² Hook Lake Project includes the Turquetil Lake gold deposit and several polymetallic volcanogenic massive sulphide (VMS) prospects. Historical drilling at Turquetil Lake outlined a foreign estimate of 3.4 million tonnes at 2.38 g/t Au, equating to 285,000 ounces of gold. The site has remained largely inactive since 1988.
Strategic Expansion into Canadian Gold
CEO Kell Nielsen highlighted that the acquisition will bring a seasoned technical team to Manhattan’s board. “This team will play a critical role in unlocking value through modern exploration techniques and by honouring the current agreement with Inuit landowners,” he said.
The company sees near-term potential for maiden mineral resources at Turquetil Lake, with plans to test the mineralized strike and depth extensions. Upon project transfer, exploration is expected to accelerate.
Gavin Rezos, a well-known mining entrepreneur, and Sondergaard will join Manhattan’s board as non-executive director and technical advisor respectively, pending completion.
Transaction Timeline and Shareholder Approval
Manhattan will also grant a 2% net smelter royalty (NSR) to the vendor. BDO Corporate Finance has been engaged to prepare an independent expert’s report, with shareholders to vote on the proposal in a forthcoming general meeting. The acquisition is expected to complete by August 2025.
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