Trillium Gold Mines has agreed to acquire all of Infinite Ore’s Contiguous Confederation Lake Land Package in the Red Lake Mining District, Ontario in Canada.
Under the definitive deal, Trillium will purchase Eastern Vision property holdings in the Confederation Lake assemblage of the Birch-Uchi greenstone belt.
Trillium will issue four million of its common shares and make a $175,000 cash payment to Infinite Ore for the transaction.
Additionally, the firm will assume all cash payment commitments of Infinite Ore under its existing option agreements. Infinite Ore, however, will retain its share issuance obligations.
The deal follows the signing of a non-binding letter of intent.
Trillium Gold said that the acquisition will provide it with control over a significant part of the Confederation Lake assemblage.
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It is also expected to create a contiguous land package covering more than 100km of favourable structure on trend with Great Bear Resources’ Dixie Deposit.
Infinite Ore president J C St-Amour said: “The transaction gives Infinite, through its share ownership in Trillium, exposure to a larger consolidated land package extending greater than 100km in length in the Red Lake area.
In a press statement, Trillium Gold said: “The definitive agreement is considered a major step in strengthening Trillium Gold’s strategic advantage to consolidate the greenstone belt and positions it as the most dominant exploration company in the Red Lake Mining District.”
Covering an area of 16,991ha, the Eastern Vision project includes the Garnet Lake, Fredart, Confederation North, and Confederation South properties.
The sale forms part of Infinite Ore’s plan to focus on its 100%-owned Jackpot Lithium project, located near Thunder Bay, Ontario.
St-Amour added: “Infinite is preparing a winter drilling programme that would focus on resource expansion.”
Located in the Georgia Lake Area, the Jackpot Lithium property holds known lithium bearing granitic pegmatite dykes.
Recently in Canada, Wheaton Precious Metals agreed to purchase gold and silver streams on the Blackwater project in British Columbia for $441m.