- Orford Mining Corporation (ORM) has reached a definitive agreement with Globex Mining Enterprises to acquire the Joutel Eagle Property
- The Joutel Eagle property is an advanced exploration property with well-developed gold targets and existing gold zones
- The property is situated northwest of Agnico Eagle’s past-producing Eagle -Telbel operation which produced in excess of 1.1 Moz of gold1 from 1974 to 1993
- David Christie, President and CEO of Orford sat down with Caroline Egan to discuss the agreement
- The total cost of the acquisition is $1,625,000 over five years
- Orford Mining is a gold explorer focused on highly prospective and underexplored areas of Northern Quebec
- Orford Mining Corporation (ORM) opened trading at C$0.165 per share
Orford Mining Corporation (ORM) has reached a definitive agreement with Globex Mining Enterprises Inc.
Under the agreement, Orfors will acquire Globex’s 50 square km, 191 claim property position in the Joutel region of the Quebec Abitibi, the Joutel Eagle Property.
The property is an advanced exploration stage property with approximately 20,000 metres of historic drilling that have defined multiple gold zones.
The property is situated northwest of Agnico Eagle’s past-producing Eagle -Telbel operation which produced in excess of 1.1 Moz of gold1 from 1974 to 1993.
David Christie, President and CEO of Orford sat down with Caroline Egan to discuss the agreement.
“We are extremely excited to add the Joutel Eagle property position to our Joutel area claim position. I started my career working along this same structure and believe it is deserving of more thorough systematic exploration. The Joutel Eagle property is an advanced exploration property with well-developed gold targets and existing gold zones that has not been worked since 1999. We are eager to explore the property with modern methods and test the drill-ready targets with diamond drilling in early 2022. We believe the Joutel Eagle property provides Orford an opportunity for a near term discovery in the heart of the prolific Abitibi District”.
The agreement between Orford and Globex includes both work commitments and cash/share payments over five years for Orford to earn 100 per cent undivided legal and beneficial interest in the Globex properties.
Orford has made a firm commitment to spend $200,000 on the property before the first anniversary date of the agreement and a firm commitment of $325,000 before the second-anniversary date of the agreement. Year three, four and five work commitments are $350,000, $650,000 and $1,250,000 respectively by the end of each of those years. The total work commitment if all five years are exercised is $2,775,000, with more than half that amount in the last two years of the option.
Orford has made a firm commitment to make a payment upon signing of $225,000 and a further payment of $200,000 on the first anniversary date of the agreement. If Orford elects to continue the option at the start of years three, four and five, then cash payments of $250,000, $350,000, and $350,000 respectively would be due.
The total to be paid to Globex by Orford to earn 100 per cent undivided legal and beneficial interest in the Globex Joutel properties would be $1,625,000.
Upon exercise of the option, Globex’s interest in the Joutel Eagle Property will be converted to a 3.5 per cent Gross Metal Royalty (GMR). Orford shall retain the right and option, at any time, to purchase 1.5% of this GMR for $2M.
Orford Mining is a gold explorer focused on highly prospective and underexplored areas of Northern Quebec. Orford’s principal assets are the Qiqavik and West Raglan projects comprising a land package totalling over 80,000 hectares in the Cape Smith Belt of Northern Quebec.
Orford Mining Corporation (ORM) opened trading at C$0.165 per share.
