An agreement between Petro Plus (PPV.A-A) and a private Alberta company is expected to provide the necessary funds to resume operations at the Blackdome gold mine near Clinton, B.C.
By month’s end, MCM Minerals will pay Petro $2 million in cash in return for Petro’s interest in the Blackdome project. Petro will use the funds to fulfil a previously signed agreement with property owner Claimstaker Resources (CLN-V) whereby Petro could earn a half interest in Blackdome by arranging for and financing $2.5 million worth of exploration and development.
To date, Petro has spent $1 million on the project.
The Blackdome mine was operational from 1986 to 1991, during which time it produced 225,000 oz. gold and 550,000 oz. silver from 335,657 tonnes of ore.
The mine contains a 210-Tonne-per-day mill, which requires minor repairs and changes to become operational again.
Petro reported last month that crews on site were rehabilitating and dewatering underground workings and completing a feasibility study.
The project contains reserves in all categories of 155,933 tonnes grading 14.8 grams gold and 37 grams silver.
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