Midland options its Tete Nord nickel-copper property in Quebec to Rio Tinto
(Kitco News) - Today, Midland Exploration (TSX-V: MD) announced the signing of a new option agreement with Rio Tinto Exploration Canada Inc. ("RTEC") for its Tete Nord nickel-copper property located near the town of La Tuque, Quebec.
Under this new agreement, the company said that RTEC may earn an initial 50% interest in the Tete Nord property over a period of four years by incurring exploration expenditures totalling $4,000,000 and making cash payments totalling $500,000.
After earning an initial 50% interest, RTEC may elect to increase its interest to 70% over a period of four years by incurring exploration expenditures totalling up to $10,000,000 and making cash payments totalling $500,000.
The Tete Nord property comprises 935 claims covering a surface area of about 515 square kilometres in mafic and ultramafic rocks of the La Bostonnais Complex north of La Tuque. The largest claim block is located south of the former Lac Edouard mine, which historically produced 50,000 tonnes grading 1.50% Ni and 0.50% Cu.
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According to a statement, Midland and RTEC will be preparing an aggressive exploration program within the next weeks.
Midland said it targets the excellent mineral potential of Quebec to make the discovery of new world-class deposits of gold, platinum group elements and base metals. The company indicated it prefers to work in partnership and intends to quickly conclude additional agreements in regard to newly acquired properties.