Junior Minorca Resources (ME) intends to acquire a half interest in the dormant Bachelor Lake gold mine from Espalau Mining (ME).
The company would do so by funding $4.5 million of exploration and development work and by providing necessary loan financing to put the mine back into production.
Situated in northwestern Quebec, the mine entered production in July, 1982, but was shut down in August, 1989.
The property features a 500-ton-per-day mill, and reserves are estimated to exceed 1.1 million tons averaging 0.236 oz. gold per ton.
Minorca also intends to acquire 25% of the shares of the Ross Finlay consulting firm from Espalau, which Minorca would accomplish by issuing a $2-million convertible debenture. (The first $1 million would be due in 12 months, and the balance within 24 months.) An additional 5% of the shares may be acquired for $500,000, payable within 18 months.
A formal agreement is expected to be signed shortly.
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