Having successfully acquired the Pamour group of companies, Royal Oak Mines (TSE) is expanding its position in the Timmins, Ont., gold camp where it is already an established producer.
Royal Oak says it has agreed in principle to purchase the interests of Belmoral Mines (TSE), Cabre Exploration (TSE) and Wrightbar Mines (ME) in 58 claims containing the former Broulan and Porcupine Reef mines. Under the agreement, Royal Oak will pay out $200,000 and issue 289,640 common shares to Belmoral, Cabre and Wrightbar which own 56.48%, 30.46% and 13.06% of the property respectively.
Royal Oak says it will use the facilities on its Hallnor property, including a shaft, hoist, headframe and surface plant to explore at depth the adjacent Broulan claims. With access to a depth of 5,000 ft., Royal Oak is also planning to look for extensions of the Hallnor mine which produced 1.1 million tons of grade 0.39 oz. gold per ton.
Ore on the Broulan property can be, therefore, accessible and brought to surface through the Hallnor facilities and milled at Royal Oak’s Pamour mill just one mile away, according to Royal Oak.
Belmoral will use proceeds of the proposed agreement to reduce debt.
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