Ontario's Ministry of Northern Development and Mines (MNDM) has changed the status of Sage Gold’s Clavos project from inactivity to mine production and development.
The changed status will allow Sage Gold to begin the process of mine dewatering and rehabilitation.
Up to 700t a day of mineralised material can be produced from this mine.
Sage Gold president and CEO Nigel Lees said: “This change of project status is a very significant development for Sage and, together with the recently announced agreement to acquire Kirkland Lake Gold Inc's remaining 40% minority interest in Clavos, is a major milestone towards completing the previously announced financing package of $11.5m to fund the restart of Clavos.
“We expect to close the equity portion of $1.85m in early November followed by the gold prepayment funding of $9.65m by the end of November.”
Sage has an approved production closure plan with the MNDM from its previous mining activities. It will resume mining in accordance with the original closure plan.
Financial assurance for the closure plan with MNDM was also in-place in compliance with Ontario Mining Act.
The company has also gained environmental compliance approval for its mine dewatering and production activities.
Sage Gold plans to perform a pre-feasibility study and complete a reserve estimate for the Clavos project.