Radisson aims to buy gold deposits in Quebec

Under a letter-of-understanding with partner Breakwater Resources (BWR-T), Radisson Mining Resources (RDS-M) plans to purchase sole ownership of the O’Brien gold property and the adjacent Kewagama claims in the Abitibi region of Quebec.

In exchange for 2 million Radisson shares and $1 million in cash at the start of commercial production, Breakwater will transfer ownership of the two gold properties to Radisson.

The O’Brien property has resources of 540,000 grading 5.8 grams gold per tonne in the former mine and another 650,000 tonnes of 6.9 grams in Zone 36 East. Infrastructure, including the mine buildings and a 200-ton-per-day processing plant, is included in the deal.

The 112-ha Kewagama property lies directly east of Zone 36 East. Some high-grade gold mineralization was mined from the property in 1982, and drilling has intersected smoky quartz veins with free gold grading up to 86 grams per tonne over 1 metre. Ownership of Kewagama is subject to a 2% net smelter royalty. The offer is conditional upon a due diligence review by Radisson and regulatory approval.