Osisko Mining, a Canadian mineral exploration company, has reached an agreement with Bonterra Resources to acquire a 70% exploration earn-in and joint venture (JV) stake in its Urban-Barry properties along with the adjoining Duke and Lac Barry properties in Canada.
Located in Quebec’s Eeyou Istchee James Bay region, the Duke property is 70% owned by Bonterra and 30% by Osisko. Bonterra also owns 85% of the Lac Barry property while the remaining 15% is owned by Gold Royalties.
All these properties consist of a total of 496 claims, covering more than 22,508 hectares (ha).
As part of the agreement, Osisko will pay an upfront amount of $1m (C$1.35m) in cash within one working day and $4m in cash upon entering a definitive agreement.
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Under the exploration earn-in, it will fund $30m in work expenditures over three years to earn a 70% undivided interest, in accordance with $10m in annual work expenditures.
After completing the exploration earn-in, Osisko and Bonterra will enter a JV. During exploration earn-in and after forming the JV, Osisko will operate the properties.
It also plans to form a management committee to direct the operator during exploration programmes at the Urban-Barry properties.
The Urban Barry properties are located 700km from Montreal and include 1,372 map-designated claims covering roughly 741km². Osisko holds a 50% stake in the property.
The Barry deposit within the property has a shear-hosted gold deposit with several parallel, subvertical shear zones. The mineralisation includes disseminated sulphides within the shear zones and veins with local visible gold.
The Gladiator deposit is hosted within veins of chalcopyrite, chlorite, galena, sericite, sphalerite, tourmaline with pyrite, and visible gold.
Located next to the Gladiator deposit, the Duke property is said to comprise 81 mineral claims totalling 3,590ha. Its mineralisation is associated with several sub-parallel, shear-hosted, quartz-carbonate-chlorite veins and stockworks with minor pyrite and gold trending.