An agreement has been reached for the purchase by Meston Lake Resources of the royalty interests of the Societe de developpement de la Baie James on the Meston Lake properties in Quebec’s Chibougamau region.
Total consideration is almost $2.5 million payable with interest over a 5-year period. The Societe royalty stems from an agreement signed in 1984. The purchase is subject to regulatory approval.
In other news, Meston Lake reports a net income of $877,000 (10 cents per share) on revenue of almost $4.3 million for the 3-month period ending June 30. Meston Lake’s Joe Mann gold mine near Chibougamau went into commercial production April 2 of this year.
The company reports the Joe Mann mine is operating in excess of its targeted production of 700 tons per day; it is hoped a grade of 0.2 oz gold per ton will be achieved during the current (July-September) quarter.
The Joe Mann mine is managed by Camchib Mines, a wholly owned subsidiary of Campbell Resources. Campbell owns about 68% of Meston’s equity.
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