- Junior exploration company NioBay Metals (NBY) has signed a deal to sell its 47 per cent interest in the Des Meloizes property to Generic Gold
- The property is currently held under a joint venture agreement with SOQUEM, which owns the remaining 53 per cent stake
- As consideration for the sale, NioBay will receive a total of C$25,000 in cash and 1.75 million common shares in Generic Gold
- The transaction remains subject to a number of conditions, including regulatory approval and the execution of a definitive agreement
- NioBay Metals (NBY) is currently steady at 80 cents per share
Junior explorer NioBay Metals (NBY) has agreed to sell its 47 per cent interest in the Des Meloizes property to Generic Gold.
Located in the Abitibi region of northwestern Québec, the property covers 4,415 hectares and lies just seven kilometres east of Amex Exploration’s Perron gold project.
The Des Moloizes property is currently held under a joint venture with Val-d’Or-based SOQUEM, which owns the remaining 53 per cent stake.
According to the terms of the agreement, Generic Gold will wholly acquire the property by issuing C$25,000 in cash and 1.75 million common shares to NioBay, and by issuing $175,000 in cash and 750,000 common shares to SOQUEM.
SOQUEM will also retain a three per cent net smelter royalty on the Des Moloizes property, one third of which may be purchased by Generic Gold for a one-time fee of $1 million.
The transaction, which is expected to close following regulatory approval and the execution of a definitive agreement, comes as Generic Gold looks to consolidate its land holding in the region.
The company currently owns the Belvais Project, which is contiguous with the Des Moloizes property to the north.
The Des Moloizes property is crossed by the regional Normétal thrust fault, which is related to mineralisation at the nearby Perron property as well as the past-producing Normétal mine.
Previous drilling at the property, which focused on a poly metallic showing, Lac Des Méloizes-1356, returned promising results, including 1.048 per cent zinc over 4.5 metres and 1.082 grams per tonne of gold over one metre.
NioBay Metals (NBY) is currently steady at 80 cents per share at 11:59am EDT.