Continuing an alliance formed earlier this summer, Virginia Gold Mines (VIA-T) and Noranda (NRD-T) have signed a second agreement to jointly conduct geoscientific work in the north of Quebec.
Under the agreement, Noranda has subscribed to a private placement of 333,333 shares of Virginia at $1.50 apiece for gross proceeds of $500,000. The funds will be applied to complete a second phase of exploration, estimated at $1 million. The major can earn a 55% stake in any target generated by the work programs. Once its earns its interest, Noranda will act as operator.
The alliance between the two companies was originally formed in June, when the two agree to jointly conduct geoscientific work on ground covering 3,600 sq. km. in the province’s central or northern region. Virginia President Andre Gaumond would reveal the exact location of the land package, but did say that exploration was aimed at base metal targets.
The deal was sealed by Noranda completing a private placement of 633,333 Virginia shares at $1.50 each, for gross proceeds of just under $1 million. The proceeds went toward a $1.9-million exploration program.
Results from the first phase of exploration have not been released.
Weeks after the Noranda alliance, Virginia teamed up with Placer Dome (PDG-T) to explore for precious metals in the Labrador Trough region of Quebec. The 50-50 exploration agreement, which is extendible, ends next July.
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