Barrick options La Grande

An agreement with Diabior Explorations (ME) will see Barrick Gold (TSE) acquire a 50% interest in the northern and southwestern part of La Grande, a gold property in northwestern Quebec.

The property lies within the Grande Archean greenstone belt, in which numerous gold showings have been discovered, with values ranging from 0.36 to 1.06 oz. per ton. The property features gold-bearing shear zones, quartz veins and iron formations.

The deal covers the northern portion of the Grande Sud project, plus all of the Sakami, Gaber and Sipanika projects. Diabior wholly owns all but the Sipanika project, in which it has a half interest and an option to acquire the remaining half. Barrick has been granted a right of first refusal on the southern portion of the Grande Sud project.

To acquire its 50% interest, Barrick must spend $3 million on exploration over a 4-year period and pay $250,000 to Diabior. Diabior and Barrick will take turns as operator up to the development stage, at which time the latter will become sole operator.

Diabior has completed a private placement of $900,000 with 20 European subscribers at 90 cents per share. Half a warrant has been granted for each share issued, allowing the subscribers to buy common shares for $1.25 apiece until July 31, 1997.

Proceeds will be injected into Diabior’s working capital.

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