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Newrange Gold has signed a definitive agreement to acquire a past-producing, high-grade gold mine in the Red Lake Mining Division of Ontario, Canada.

The property, Argosy Gold Mine, closed in 1952 due to high operating costs.

According to Ontario Ministry of Northern Development and Mines archives, the site produced 101,875oz of gold and 9,788oz of silver at a gold grade of 0.37oz/t (12.7g/t).

All production was from four veins despite 12 being identified and to a depth of 900ft.

The company will seek to discover new veins in the property as Argosy Gold Mine recorded minimal exploration beyond the old workings.

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Newrange CEO Robert Archer said: “The acquisition of a past-producing, high-grade mine in an area of active exploration presents a unique opportunity to increase shareholder value.

“The Argosy Mine has seen minimal exploration below the old mine workings and there is excellent potential to extend the mineralisation to depth and to discover new veins elsewhere on the property.

“The Argosy Mine is approximately 10km north-west of the Springpole Deposit being advanced by First Mining Gold and less than a kilometre from our North Birch Project.”

Overall, the site comprises 43 patented claims and 17 mining licences of occupation.

As agreed, Newrange will acquire Cangold, the owner of Argosy Gold Mine and a fully owned subsidiary of Great Panther Mining, to gain a 100% interest in the property.

The acquirer will pay C$100,000 ($79,992) in cash and issue C$650,000 ($519,951) in Newrange shares to Great Panther on closing as consideration. Additionally, Newrange will make another payment of C$250,000 ($199,981) in shares on the first anniversary of closing.

The deal is expected to close within 90 days, subject to the approval of the TSX Venture Exchange.