Barrick Gold (ABX-T) has inked a deal whereby it can earn a 51% interest in the Golden Summit property of International Freegold (ITF-V), situated in the Fairbanks district of Alaska.
For its interest, Barrick must invest up to $10 million in equity in Freegold. Barrick’s investment is structured to include an initial purchase of $750,000 of Freegold’s existing special warrants (which consist of one share at 70 cents and a one-half share purchase warrant at 95 cents), as well as the purchase of $750,000 of series C special warrants.
Should Barrick exercise the purchase warrants, it would have the right to exercise property warrants valued at $7.5 million.
Barrick has an option to earn an additional 19% interest in Golden Summit, for a total of 70%, should the property reach production.
Freegold recently increased its interest in the Golden Summit property to 93% with the payment to Fairbanks Exploration of 500,000 Freegold shares.
Reserves on the 22,000-Acre property stand at 31.5 million tons grading 0.039 oz. per ton, equivalent to 1.2 million contained ounces.
Now that the ice is beginning to melt and warmer weather is around the corner, the region is primed for the coming summer field season.
By mid-June, Freegold expects to begin drilling at the Cleary Hill prospect, which is situated on the Golden Summit property.
Elsewhere in Alaska, Dakota Mining (DKT-X) is beginning to load the leach pads at its Illinois Creek gold mine, now that the company has completed its merger with USMX, and Ventures Resource (VRS-V) has announced plans to begin drilling on its nearby property in the Flat mining district. Drills should be also turning on Ventures’ Veta property in eastern Alaska.
Meanwhile, La Teko Resources (LAO-V) and Newmont Mining (NEM-N) have added another 53 claims to the southwestern side of their True North joint venture, also in the Fairbanks district, bringing their total holdings there to more than 9,000 acres.
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