Barrick Gold (TSX: ABX; NYSE: GOLD) and Midland Exploration (TSX-V: MD) have inked a deal that gives the world’s second largest bullion producer the right to earn into the junior’s Patris gold property in western Quebec.
As part of the deal, Barrick will make cash payments of $1.02 million and undertake exploration work totalling $16.57 million over eight years, which would give it up to a 75% stake in Patris.
The Toronto-based miner will be the operator of the work carried out under the agreement, Midland said.
“We are delighted to welcome Barrick as one of our new high-quality partners who will ensure the progress of future exploration work on this excellent gold project,” CEO Gino Rodger said.
Midland and Barrick have also agreed to negotiate a definitive earn-in and joint venture agreement upon the satisfactory completion of due diligence by the gold giant and the receipt of any required regulatory approvals.
The Patris gold property, 30 km northeast of Rouyn-Noranda, comprises 298 claims covering a surface area of about 117 sq. km, very close to the Doyon/Westwood-Bousquet-La Ronde gold mining camp.
Midland shares rose 9% on Tuesday, reaching 70¢ apiece in Toronto at mid-day. Its shares have traded in a 52-week window of 32¢ and 74¢, valuing the company at $57.6 million.
Barrick shares were up 4%, for $26.45 apiece, trading in a yearly range of $17.88 and $32.78. It has a market capitalization of $46.4 billion.
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