TSX-V-listed Midland Exploration has entered into a definite option agreement with a subsidiary of Barrick Gold for its Patris gold property, 35 km northeast of the town of Rouyn-Noranda, Quebec.
Pursuant to the transaction, Barrick has the right to acquire up to a 75% interest in the property in consideration for cash payments totalling C$1.02-million and exploration work totalling C$16.58-million, over an eight-year period.
Barrick will be the operator of the work carried out under the transaction.
Barrick may earn an initial 51% interest in the property over a period of four years, by paying in cash C$392 500 to Midland and funding expenditures of at least C$4-million, including a guaranteed amount of C$3-million, at which point Barrick and Midland will form a joint venture (JV).
In the following two years, Barrick may earn an additional 9% in the JV, for a 60% interest in consideration for cash payments totalling C$265 000 and exploration work expenditures of at least C$2-million.
Finally, in the subsequent two years, Barrick may earn an additional 15% in the JV, for a total 75% interest in consideration for cash payments totalling C$360 000 and exploration work expenditures of at least C$10.58-million.
The wholly-owned Patris project comprises 299 claims covering a surface area of about 117 km2, located less than 10 km northwest of the prolific Doyon/Westwood-Bousquet-La Ronde gold mining camp.
The Patris property offers excellent gold potential as it covers the Manneville Fault over more than 8 km and the La Pause Fault over more than 10 km, both recognised as subsidiary faults to the well-known Destor-Porcupine Fault Zone.
Barrick will be preparing an exploration programme within the next weeks.