Junior
The property is underlain by a peridotite, where previous diamond drilling yielded anomalous chromium and nickel values.
To earn its interest, South-Malartic must spend $400,000 on exploration over three years.
The deal comes on the heels of a $1-million private placement consisting 1.7 million units priced at 60 apiece. Each unit comprises one share and a warrant to buy another share at 80 over 18 months.
Meanwhile, South-Malartic expects to release final results from exploration work carried out at its Croinor gold property in Quebec’s eastern Abitibi region. The company is also acquiring the nearby Chimo gold mill from
South of the border, in the Battle Mountain-Pipeline trend of Nevada, South-Malartic intends to explore its 32-claim New Mayflower gold property.
South-Malartic acquired the property last fall by making a US$15,000 cash deposit and agreeing to an advance royalty of $1,200 per month in year 1, $1,500 in year 2, and $2,500 per month thereafter. South Malartic can buy a 100% stake at any time for $1 million and a 3% net smelter return royalty payable upon commercial production.
South-Malartic has created a wholly owned subsidiary, Ressources Mirabel, which will carry out exploration and development work on several grassroots properties.
South-Malartic has sold Mirabel its Montauban gold project, near Quebec City, for 1.8 million shares, 1.2 million of which are being distributed as a dividend to current South-Malartic shareholders. Mirabel has also acquired the 267-claim Gauma property, near Thetford Mines, Que., for 1 million Mirabel shares.
In October, Mirabel privately placed 3 million special warrants priced at 30 each, with each special warrant entitling the holder to buy one share and a warrant; the warrant can be used to buy another share for 40 over one year.
Claude Girard and Marc Baribeau have been appointed chairman and president, respectively, of Mirabel.
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