Hemlo Gold takes option on Duquesne

An option to earn a 50% interest in the Duquesne gold property north of Rouyn-Noranda, Que., has been acquired by Hemlo Gold Mines (TSE) from Radisson Mining Resources (ME).

To earn its interest, Hemlo Gold must invest $5 million worth of Radisson stock (at a minimum price of $1 per share) during a 5-year period; Radisson says 90% of that amount is to be spent on exploration work. Radisson says Hemlo Gold must not only invest $5 million, but return the shares to the company or invest another $5 million in Radisson’s treasury. Radisson also says it has entered into replacement agreements with former shareholders of Duquesne Gold Mines, whereby the company will reimburse its debt owed to the shareholders through future financing.