Make Kitco Your Homepage

Wesdome sells 3.2Moz gold deposit in Ontario for $57M

Kitco News

Editor's Note: With so much market volatility, stay on top of daily news! Get caught up in minutes with our speedy summary of today's must-read news and expert opinions. Sign up here!

(Kitco News) - Wesdome Gold Mines (TSX: WDO) announced Tuesday that it has entered into a definitive purchase agreement with Goldshore Resources, pursuant to which Goldshore will acquire all of Wesdome’s property, assets and rights related to the Moss Lake project in Ontario.

Following the closing of the transaction, Goldshore will hold a 100% interest in Moss Lake.

Under the terms of the agreement, Wesdome will receive minimum initial aggregate consideration of $57M and will be granted a 1.00% NSR royalty on all metal production from Moss Lake.

The property hosts the Moss Lake gold deposit, a large tonnage-low grade deposit amenable to surface bulk mining methods. The deposit hosts indicated resources of 40 million tonnes at 1.1 g/t Au totalling 1.4M oz Au and an additional inferred resources of 50 million tonnes at 1.1 g/t Au totalling 1.8M oz Au.

Closing of the transaction is expected to occur in early Q2 2021.

President and CEO Duncan Middlemiss commented, “Wesdome remains focused on advancing our vision of building Canada’s next mid-tier gold producer. The opportunity to advance Moss Lake and bolster our already strong balance sheet, all while retaining meaningful exposure to the project through a strategic equity position as the largest shareholder of Goldshore allows the company to remain fully focused on our underground high-grade gold mining expertise.”

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.