eResearch | Melkior Resources Inc. (TSXV: MKR) announced the closing of an option agreement with Kirkland Lake Gold Ltd. (TSX: KL) with Melkior granting Kirkland Lake the right to earn-in up to a 75% interest in the Carscallen Gold Project. The Carscallen Gold Project is located 25 kilometers west of Timmins, Ontario.
Under the terms of the agreement, in Phase 1, Kirkland Lake has a minimum spending commitment of C$3 million during the first two years of the option period and can earn a 50% interest in the property by completing C$10 million in exploration expenditures over a period of five years.
After completing Phase 1, Kirkland Lake can earn an additional 25% interest in the project, by entering into a joint venture agreement with Melkior and incurring exploration expenditures of C$100 million within the first five years of the formation of the Joint Venture.
Jonathon Deluce, Chief Executive Officer of Melkior Resources, commented:
“We are extremely excited to close this landmark equity investment and option agreement with one of the world’s most respected gold mining companies. With Kirkland Lake Gold committing $3 million with the potential of $110 million in work commitments over the next five to ten years to attain a 75% interest in the Carscallen Project, our shareholders now have the upside of discovery with limited further share dilution to advance the project.”
Private Placement
Kirkland Lake also acquired 1.25 million units of Melkior from a private placement at $0.80 per unit that comprised of one common share and one common share purchase warrant at a price of C$1.20 for a period of 2 years.
Kirkland Lake shall have the right to acquire up to 19.9% in Melkior in the future by way of either secondary market purchases or future private placement financings, and have anti-dilution rights with respect to certain future share issuances by Melkior.
Previous Drill Results
According to the company, the Carscallen Gold Project hosts seven gold zones with 98 holes drilled on the property already with the highlight hole from the November 2019 drill program coming in at 23.5 grams per tonne gold over 8 meters.
Video
To learn more about the announcement, you can access today’s Video-of-the-Day here:
Melkior closed the day at C$1.07, up over 250% on the year.
Other recent eResearch articles related to Ontario mining & exploration projects:
- Graycliff Exploration has an option to acquire 100% interest in the Shakespeare property, which is located approximately 80 kilometers west of Sudbury, Ontario, and consists of 24 mineral claims over 517 hectares (1,277 acres).
- Sparton Resources announces $0.5 million financing to fund a drill program planned at the Sir Harry Oakes Project in the Matachewan Gold District of Ontario.
