Golden Goose Resources (GGR-V, GGOSF-O) is selling its Lac Levac nickel project in Quebec to focus on gold. The company has signed an option agreement with a private Quebec exploration company, Nemaska Exploration, which is planning to do an initial public offering before the end of the year.
Nemaska has already paid a nonrefundable $150,000 for Lac Levac and has until the end of 2009 to pay the remaining $2.85 million.
Nemaska will pay $2 million in cash and give Golden Goose $850,000 in Nemaska shares at the IPO price. With each share, Golden Goose will also get one warrant that’s exercisable at a 20% premium to the IPO share price over a two-year period and a 2% net smelter return royalty.
In return, Nemaska will receive a nickel project with measured resources of 1.26 million tonnes grading 1.09% nickel and 0.56% copper, plus significant amounts of cobalt, palladium and platinum.
Indicated resources are 783,000 tonnes grading 1% nickel and 0.53% copper, plus cobalt, palladium and platinum. The project also has inferred resources of 1.05 million tonnes grading 0.81% nickel and 0.32% copper.
Lac Levac is located 216 km north of Chibougamau in the James Bay region. It’s 4 km north of a major Hydro-Quebec electrical substation, east of the Nemiscau airport and near the Route du Nord road.
Nemaska already has other projects in the area. Its main asset is the Lac Arques property. Golden Goose says it wants to focus on its Magino project, 45 km northeast of Wawa, Ont. Magino is a past-producer that churned out more than 105,000 oz. gold between 1988 and 1992.
A technical report released in May this year estimated measured and indicated resources at Magino at 2.1 million tonnes grading 6.74 grams gold per tonne for 453,000 oz. gold at a cutoff grade of 3 grams gold per tonne. It holds another 5.8 million inferred tonnes grading 6.29 grams gold for 1.2 million oz.
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