National Group
Equipment and Transport Services for the Mining Industry
Canadian company Osisko Mining has signed a binding exploration earn-in agreement with Barrick Gold for the Kan Property located in northern Québec, Canada.
Canadian company Osisko Mining has signed a binding exploration earn-in agreement with Barrick Gold for the Kan Property located in northern Québec, Canada.
Under the agreement, Barrick will spend $15m as work expenditure over a four year period to earn 70% interest in the Kan property. This is subject to certain yearly work expenditure and a guaranteed expenditure threshold of $6m in the first two years.
After completion of the Exploration Earn-In, the Kan Property will be entrusted to a joint venture entity where Osisko and Barrick will hold 30% and 70% interest, respectively. Following this, the two companies will also sign a joint venture agreement for the property.
Barrick will also have the option to gain an additional 5% interest in the property, totalling a 75% stake by providing additional $5m of project-level expenditures. This refers to preliminary economic assessments or pre-feasibility studies.
Located in Nunavik Territory in northern Québec, the Kan property is a large gold and base metal exploration project, which includes a surface area of about 30,000 hectares.
Exploration conducted in the 1990s led to the discovery of multiple gold deposits showing within the iron formation. Drill results returned 5.1g/t Au over 6m (Ferricrete Showing) and 9.46g/t Au over 2m (Kan Showing).
Virginia Mines conducted further explorations of the property between 2014 and 2016, which discovered further gold mineralisation associated with the silicate-carbonate iron formation on the Kan property.
Both parties have agreed to negotiate and enter into a definitive agreement with accordance to this binding deal, subject to customary conditions and regulatory approvals.
Equipment and Transport Services for the Mining Industry
Bearings and Units, Seals, Lubrication Systems, Remanufacturing
Crushing, Grinding and Hydrometallurgy Specialists