Noranda-Virginia JV targets Quebec

Virginia Gold Mines (VIA-T) and Noranda (NRD-T) have signed an agreement to conduct geoscientific work in the north of Quebec.

The deal saw Noranda subscribe to a private placement of 333,333 shares of Virginia at $1.50 apiece for gross proceeds of $500,000. The funds will be used to complete a second phase of exploration, estimated at $1 million. The major can earn a 55% stake in any target that is identified. Once it earns its interest, Noranda will be the project operator.

Earlier, in June, the two companies began conducting geoscientific work on ground covering 3,600 sq. km. in the province’s central or northern region (Virginia President Andr Gaumond would not reveal the exact location of the land package but did say that exploration was aimed at base metal targets).

The earlier agreement was sealed by Noranda’s completing a private placement of 633,333 Virginia shares at $1.50 each for gross proceeds of just under $1 million.

Results from the first phase of exploration under the June agreement have not been released.

Meanwhile, Virginia has teamed with Placer Dome (PDG-T) to explore for precious metals in the Labrador Trough region of Quebec. The 50-50 exploration agreement, which is extendable, ends in July 2002.