Freewest Resources (FWR-T) has granted Teck Cominco (TEK-T) an option to earn up to a 65% stake in the Lizar gold project in the Kabinakagami greenstone belt 330 km northeast of Thunder Bay, Ont.
Under the deal, Teck Cominco can acquire 55% interest in the property by spending $3 million over four years. The major can boost its stake by 10% by arranging project financing and brining the property into commercial production.
Also as part of the deal, Teck Cominco has agreed to subscribe to 375,000 Freewest shares at 40 apiece.
The agreement requires regulatory approval.
Last summer and fall, prospecting turned up 4 historic and 8 new gold and base metal occurrences at Lizar. Grab sampling was highlighted by assays running 16.3 grams gold, 39.1 grams gold and 41.6 grams gold per tonne at the first occurrence. Significant results from the second and third occurrences ran up to 7.4 grams and 5.1 grams gold, respectively.
All of the new gold showings lie in an area measuring 500 metres by 1 km.
The property also played host to a past-producing, low tonnage gold mine.
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