A letter agreement has been signed with Homestake Canada allowing the company to earn a 51% interest in the Massicotte property in Massicotte Twp. north of La Sarre, Que., Radisson Mining Resources (ME) reports.
Radisson and CS Resources (ME) have a 50% interest each in the property. To earn its 51% interest, Homestake must spend $1 million on exploration work during a 5-year period and make cash payments of $110,000 to CS, which will retain a 1% net smelter return. Radisson will retain a 49% interest. Once Homestake earns its 51% interest, it will be permitted to earn an additional 9% interest by spending $450,000 on exploration work and by paying $50,000 to Radisson. Homestake would then have a 60% interest, and Radisson 40%. The agreement is subject to regulatory approval.
Meanwhile, Radisson says its Duquesne gold project north of Rouyn-Noranda, Que., will be put on hold for two years and the underground workings will be allowed to flood. No underground exploration is expected at the former producing property during that time period. A surface drilling program is planned for the property.
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