A gypsum property in northwestern Ontario has been purchased by Val d’Or Resources (ME) of Val d’Or, Que. President Pedro Cardoso said the group of 40 claims is known to host gypsum mineralization at or near surface which could be mined by open pit methods.
Subject to regulatory approval, the company will issue seven million shares from treasury to vendor E.F. Martinello to acquire a 100% interest. The vendor will retain a 2% net smelter royalty, of which 1.5% can be bought back by the company for $2.5 million within five years.
The company hopes to be in a position to explore the deposit this winter.
Meanwhile, Cardoso said a drop in zinc prices has led the company to a decision to abandon the Bardome zinc project in the Val d’Or area.
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