An agreement has been reached between Alberta-listed Troymin Resources and Tricentrol Oils, both of Calgary, to purchase an approximate 9.5% working interest in a gold deposit in the Chibougamau area of Quebec, Troymin says. The S-3 deposit is operated by Camchib Mines.
Camchib operates two mines and a mill in the Chibougamau camp and the target is to bring the S-3 deposit into commercial production late this year at a rate of 400 tons per day.
Total ore reserves in the S-3 deposit are estimated at about 680,000 tons with an average grade after dilution of 0.15 oz gold per ton and 0.45% copper. The terms of the agreement call for an initial payment of 60,000 Troymin treasury shares in respect of the option plus a final payment, upon exercise, of $325,000. There’s an additional payment tied to the average price of gold during the option period.
The closing date for the purchase is expected to occur no later than Oct 15, subject to a waiver by Camchib of a right-of- first-refusal.
In addition to the S-3 deposit, Troymin will acquire various other interests ranging from 8.33% to 19.55% in 60 claims which surround the S-3.
If successful, this acquisition will provide Troymin with a significant gold-sourced cash flow stream, the company says.
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