Northern Ontario-focused Trillium Gold Mines has signed an option agreement to acquire the Wenasaga gold property, held by Bounty Gold, contiguous to its Eastern Vision land package.
The 1 692-ha property effectively extends Trillium’s dominant foothold along the Confederation belt on trend with Kinross Gold’s LP Fault Zone of the Dixie deposit, in the Red Lake mining district.
To keep the option in good standing, Trillium is required to pay Bounty C$25 500 over two years, issue an aggregate 64 500 common shares in the capital of Trillium over a period of two years, and grant to Bounty a 2.0% net smelter returns royalty on the claims comprising the property upon exercise of the option.
The company has the right to repurchase 50% of the royalty by paying the holder an aggregate amount equal to $1-million.
The Wenasaga property is located 30 km north-east of Ear Falls and 55 km southeast of Red Lake.
As part of its regional-scale consolidation strategy, the company has assembled the largest prospective land package in and around the Red Lake mining district in proximity to major mines and deposits, as well as the Confederation Lake and Birch-Uchi greenstone belts.
On Wednesday, Trillium signed an agreement to buy the rights and titles to the Panama Lake property, which extends the company’s contiguous foothold along the Confederation belt by 9 882 ha. The Panama Lake property, held by St Anthony Gold, is located about 80 km from, and on the same structural trend, as the Dixie project.