MSV buying out Eastmain partner

Quebec junior MSV Resources (ME) plans to go it alone at the Eastmain gold project near James Bay.

MSV has announced it has entered into an agreement with project partner Placer Dome (TSE) to purchase the latter’s 51% interest in Eastmain for $5.2 million. The transaction is subject to board of director and regulatory approval.

The deal consists of a payment of $2.2 million plus $3 million to be spent on exploration work on behalf of Placer Dome. The exploration work will be performed on properties belonging to MSV subsidiary VSM Exploration, in exchange for VSM shares.

Also, Placer Dome is to receive a 2% net smelter royalty on claims exclusive of the Eastmain deposit.

Under the agreement, MSV will be responsible for completing the Eastmain feasibility study currently in progress. Prior to the start of the feasibility study, reserves of 1.12 million tons grading 0.45 oz gold per ton were reported.

Among its other interests, MSV has a 23.4% interest in Nova-Cogesco Resources (TSE), which owns a 20% interest in the Silidor gold project which is scheduled to enter production next year.