Galena signs property option agreement with ALX to gain Mikwam Property

30 November 2016 (Last Updated November 30th, 2016 18:30)

Galena International Resources has entered a property option agreement with ALX Uranium to settle a dispute concerning the acquisition of Mikwam Property in Ontario, Canada.

Galena International Resources has entered a property option agreement with ALX Uranium to settle a dispute concerning the acquisition of Mikwam Property in Ontario, Canada.

Under the option agreement, Galena is entitled to acquire a 100% interest of Mikham Property within three years by making a series of aggregate cash and share payments to ALX.

Under the deal, Galena will need to pay C$25,000 ($18,598) and issue two million common shares on closing of the transaction.

Galena will also be required to pay C$50,000, C$75,000 and C$100,000 to ALX at every anniversary of option agreement for three years.

The agreement also includes issuance of 500,000 common Galena shares to ALX at 12 months of the option agreement and then 750,000 shares at both the second and third anniversary marks.

"Mikham Property consists of nine contiguous claims over 944ha of the Casa Berardi Deformation Zone in the Larder Lake Mining Division."

The agreement is subject to TSX Venture Exchange approval and customary conditions.

Under the agreement, Galena will grant ALX a net smelter returns royalty equal to 0.5% from the property. Galena will have the right at any time to acquire the NSR Royalty from ALX in consideration of a cash payment of C$1m.

Mikham Property consists of nine contiguous claims over 944ha of the Casa Berardi Deformation Zone in the Larder Lake Mining Division. It is located around 160km from Timmins, Ontario, and lies within on the Harricana-Turgeon Belt.

The Harricana-Turgeon Belt is known to host polymetallic deposits and multiple gold deposits that include Eagle mine, the Casa-Berardi mine and the Detour mine.

Galena has hired Caracle Creek International Consulting to prepare a National Instrument 43-101 technical report for Mikwam Property.

Galena CEO and president Mark N J Ashcroft said: “We are pleased to have reached an agreement with ALX on terms we consider favourable to the shareholders of both companies.

“We look forward to moving ahead with closing and commencing our exploration programme on Mikwam.”

A mining exploration company, Galena focuses on gold within the Abitibi Gold belt in Canada.