Kirkland Lake Gold to start exploration at Wallbridge's Detour East property
|Image credit: Wallbridge Mining.|
(Kitco News) - Wallbridge Mining Company (TSX:WM) today announced that it has entered into an option agreement with Kirkland Lake Gold (TSX:KL) with respect to its Detour East gold property. Kirkland can earn a 75% interest in Detour East by making expenditures totalling $35 million on the property.
Under the terms of the option agreement, Wallbridge will grant Kirkland the option to acquire up to an undivided 50% interest in the property by funding phase 1 expenditures of $7.5 million over five years with a minimum commitment of $2.0 million in the first two years. During the option period, Kirkland shall have the right to act as operator of the Property.
Upon satisfaction of the option, Wallbridge and Kirkland shall form a joint venture with Kirkland acting as the operator of the joint.
Upon the formation of the joint venture, Kirkland will hold the right to acquire an additional 25% interest in the property by incurring additional expenditures of $27.5 million within the first five years of the formation of the joint venture.
Wallbridge is currently advancing the exploration and development of its 100%-owned Fenelon Gold property, which is located along the Detour-Fenelon Gold Trend, an emerging gold belt in northwestern Québec. Wallbridge is also the operator of, and a shareholder in, Lonmin Canada, a privately-held company with a large portfolio of nickel, copper, and platinum-group metals projects in Ontario's Sudbury Basin.