TORONTO (miningweekly.com) – Gold project-development junior Maudore Minerals has acquired the Sleeping Giant gold mill and adjacent tailings facility, in Quebec, through acquiring a subsidiary of North American Palladium (NAP) for $18-million in cash and 1.5-million common shares.

Maudore on Monday said as a result of its acquisition of NAP Quebec Mines, it had also acquired all of NAP's Quebec-based gold assets.

The $18-million price for NAP Quebec Mines was fully funded by a senior-secured credit facility of $22-million provided by FBC Holdings, an arm's-length party, on Friday.

"The acquisition of the Sleeping Giant mill and tailings facility run by its highly skilled and experienced workforce is truly the most transformative event in the history of our company. With new mining facilities and advanced-stage exploration properties contiguous to our existing properties, we now have a total land package of 144 000 ha.

“This represents the first in a series of planned steps for Maudore to consolidate significant holdings in the prolific Northern Abitibi region of Quebec and positions the company to become a leading Canadian gold producer capable of delivering shareholder value through the exploration, development and production of our properties,” Maudore chairperson Kevin Tomlinson said.

The processing facility was strategically located 60 km west of Maudore’s Osbell deposit and 150 km north of Val-d'Or, Quebec, along Highway 109, a route which continues north to Matagami, Quebec.

The processing facility was designed to operate at a rate of 900 t/d, and was currently processing between 400 t/d to 600 t/d, achieving about 92% gold recovery, five days a week, by treating underground ore from NAP’s Vezza gold project, as it continued to ramp up production.

In 2010, NAP determined that the Sleeping Giant processing facility could be upgraded in two phases from 900 t/d to 1 250 t/d, and then from 1 250 t/d to 1 750 t/d.

“The location of the facility, within 60 km of our Osbell deposit, provides us with the opportunity to become a cost-effective producer. It also fits well with our efforts to arrange a merger with Eagle Hill Exploration, whose Windfall Lake resource is well within trucking distance of the Sleeping Giant processing facility,” Tomlinson said.

The company also on Monday said it intended to proceed with a $25-million ‘best efforts’ private placement, the proceeds of which would be used to explore, develop and expand its existing projects and operations; to fund corporate activities with respect to growth initiatives; and for other general and corporate purposes.

The TSX-V-listed company’s stock traded at C$1.08 apiece on Monday.