British Columbia-focused explorer Kootenay Resources has signed up gold miner Centerra Gold to earn into the Copley property, where it sees potential for the discovery of million-ounce deposits.
In terms of the agreement, a total of C$4-million in exploration expenditures and C$400 000 in cash payments must be incurred and made over a four-year period for Centerra to earn a 70% interest.
The first year requires a work expenditure with a minimum commitment of $250 000. Upon the fulfilment of these conditions, the two companies will enter a standard joint venture (JV) agreement with Kootenay retaining a 30% interest, and funding of further work will be done on a pro rata basis amongst the JV partners.
“We look forward to benefiting from Centerra's expertise and consider their participation via the option agreement a reflection of our belief that the Copley property has the potential for the discovery of million-ounce gold deposits,” said president and CEO James McDonald.
The Copley property is host to a large area of gold mineralisation along a 6.5 km long trend.
Meanwhile, Kootenay announced the closing of its non-brokered private placement of 7.05-million flow-through shares at $0.05 each, raising aggregate gross proceeds of $352 500. Proceeds from the private placement will be used for the development of the company's resource properties and general working capital requirements.