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Be the first with the news that moves the market- Kirkland Lake Gold (KL) has secured an option agreement for Wallbridge Mining’s (WM) Detour East Gold property in Quebec
- Through the agreement, Kirkland can earn up to a 75 per cent interest in the property, in exchange for C$35 million in expenses split over numerous tranches
- Following the first five-year phase of exploration, the two companies will form a joint venture to continue developing the site, with Kirkland acting as site operator
- Previous drilling at the site’ Lynx and Rambo prospects returned grades up to 9.61 grams per tonne gold over 6.25 metres and 1.22 grams per tonne gold over 20.1 metres
- Wallbridge Mining remains unmoved at 82 cents per share, while Kirkland Lake Gold is down 3.78 per cent and is trading at $51.88 per share at 2:53pm EST
Kirkland Lake Gold (KL) has secured an option agreement on Wallbridge Mining’s (WM) Detour East Gold property in Quebec.
Through the agreement, Kirkland can earn up to a 75 per cent interest in the property, in exchange for C$35 million in expenses, over numerous tranches.
Firstly, Kirland will gain a 50 per cent stake in the property by spending $7.5 million on the property’s five-year phase one exploration effort. During this first five-year phase Kirkland has the option to act as operator of the site.
Following the completion of phase one, Kirkland and Wallbridge will enter into a joint venture, which Kirkland will also operate. To claim final 25 per cent stake allotted in the agreement, Kirkland will need to spend a further $27.5 million on developing the property in following five years.
Located just 11 kilometres from Kirkland’s own Detour Lake gold mine, Detour East Gold is still in the early stages of development but has shown promising results thus far. Drilling at the site’ Lynx and Rambo prospects returned grades up to 9.61 grams per tonne gold over 6.25 metres and 1.22 grams per tonne gold over 20.1 metres.
Nevertheless, Wallbridge Mining is not actively exploring the site, choosing instead to focus on developing its flagship Fenelon Gold project.
Despite Detour East’s promising early results, investors on both side of the deal have not responded positively.
Wallbridge Mining remains unmoved at 82 cents per share at 2:51pm EST.
Meanwhile, Kirkland Lake Gold is down 3.78 per cent and is trading at $51.88 per share at 2:53pm EST.
