An option agreement has been entered into by gold producer Corona Corp. (TSE) and Quebec junior Messeguay Mines (ME) whereby the former may earn up to a 70% interest in a portion of Messeguay’s Launay-Privat gold claims located 30 miles northeast of Rouyn-Noranda, Que.
Corona may earn up to a 51% interest through cash payments, exploration work, share purchases and other considerations worth a total of $3.6 million over three years.
At the election of Messeguay, Corona may earn up to a 70% interest in the property by providing the junior with a feasibility study within a 5-year period.
The 13,000-acre Launay-Privat property contains several zones of gold mineralization, Messeguay reports. One of these areas, zone 75, uncovered by Messeguay last winter, is calculated to contain reserves totalling 541,300 tons grading 0.12 oz gold per ton, including 252,200 tons in the probable category, to a vertical depth of 300 ft. Messeguay says zone 75 is open at depth and along strike and has the potential to be a low-cost, open- pi t project.
Under the terms of the agreement, Corona may also acquire an approximate 331/3% interest in Messeguay through a series of private placement subscriptions over a 3-year period. Corona will also nominate one member to the Messeguay board of directors.
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