Melkior closes option/JV agreement with Barrick at White Lake
|Image credit: Melkior Resources.|
(Kitco News) - Melkior Resources (TSXV:MKR) (OTC:MKRIF) announces the closing of an option and joint venture agreement with Barrick Gold (TSE:ABX). Under the terms of an option agreement, Melkior has granted Barrick the right to earn-in up to a 75% interest in the White Lake project located 20 kilometers east of Barrick’s Hemlo mine.
Barrick has an option to earn a 75% interest in the property in consideration for completing $4 million in exploration expenditures over a period of five years. Barrick has a minimum commitment of $0.5 million during the first two years of the option period.
Upon Barrick completing the expenditures and earning its 75% interest, the parties shall enter into a joint venture agreement to carry on operations with respect to the property. Funds required for further development will be contributed by the joint venture parties based on their proportional joint venture interests (75%/25%).
CEO Jonathon Deluce commented: "We are proud to announce this option agreement with one of the world’s largest gold mining companies. Barrick operates the Hemlo mine 20 kilometers west of the White Lake project, which has been in production since 1989. With Barrick’s plans to extend the life of the Hemlo gold mine by transitioning it to a modernized Tier Two asset, it is clear there is still a lot to come from this mining camp that has produced over 21 million ounces of gold.
With Barrick as our partner to move the White Lake project forward, even a small discovery has the potential to be economic because of the property’s proximity in relation to their processing facilities.”
White Lake project is comprised of 328 contiguous claim units (12,966 acres), located approximately 15 km northeast of the Hemlo Gold mine currently operated by Barrick. The White Lake property is situated in the north-eastern portion of the Hemlo Greenstone belt, which has only seen sporadic interest in the last four decades, since the Hemlo staking rush.