PERTH (miningweekly.com) – Dual-listed gold junior Chalice Gold Mines has moved to acquire the remaining 30% interest in the East Cadillac gold project, in Canada, from TSX-V listed joint venture partner Monarques Gold Corporation.
Under the original option and farm-in agreement, Chalice in March this year met its maximum exploration expenditure commitment of C$3.1-million to earn a 70% interest in the project, while also making total option payments of C$200 000 and granting a 1% net smelter returns royalty.
Chalice would acquire the remaining interest in the project for three-million Chalice shares, and by granting an additional 0.5% to 1.5% net smelter returns royalty to Monarques.
Chalice will be able to buy back 0.5% of the total 2.5% net smelter returns royalty at any time from Monarques, for C$1-million.
The ASX- and TSX-listed Chalice said on Monday that the acquisition strengthened the company’s strategic position in the Abitibi greenstone belt, and provided it with a large, contiguous tenement position in the gold province.
The company is currently conducting an extensive field programme over the project, including extending soil and rock chip geochemistry, airborne magnetics, and three-dimensional IP geophysics coverage, which will be completed in October.