Midland Exploration Engages Barrick Mining for Lewis Gold Property
MONTREAL — Midland Exploration Inc. (TSX-V: MD) is excited to report a significant step forward with the signing of a definitive option agreement with Barrick Mining Corporation. This agreement pertains to the Lewis gold property, which is entirely owned by Midland and is strategically positioned in proximity to promising geological formations.
Understanding the Option Agreement
The agreement allows Barrick to acquire up to a 75% interest in the Lewis property. To achieve this, Barrick must fulfill cash payment obligations totaling $750,000 and invest in exploration activities amounting to $12 million by December 31, 2032. Notably, Barrick will take the lead as the operator of all exploration work under this agreement.
Initial Investment and Joint Venture Formation
As part of the initial terms, Barrick can secure a 51% interest by making cash payments of $250,000 to Midland and committing at least $3 million in exploration funding. An essential condition requires a minimum of $200,000 to be allocated before December 31, 2028. Upon meeting these criteria, a joint venture between Midland and Barrick will be formed, marking the beginning of a collaborative effort aimed at unlocking the property's potential.
Subsequent Funding Opportunities
Following the initial stake, Barrick has the opportunity to increase its interest further. By contributing an additional $200,000 and investing at least $1.5 million before December 31, 2030, Barrick can elevate its share in the joint venture to 60%. Additionally, a further investment of $300,000 and $7.5 million in exploration by December 31, 2032, can boost its holding to a total of 75%.
Dilution Terms and NSR Royalty
In the event that Barrick does not complete the funding requirements for subsequent options, adjustments in ownership will occur according to predetermined terms in the joint venture agreement. Should Barrick’s interest drop to 10% or below, this will convert to a 2% net smelter return (NSR) royalty, with the option to repurchase 1% of the NSR for $1.5 million.
About the Lewis Property
The Lewis gold property, acquired in April 2020, encompasses 154 exclusive exploration rights, covering approximately 86 km² of strategically advantageous terrain. It lies near the Guercheville-Opawica deformation zone, which is known for its mineral potential. The property is also located roughly 60 kilometers from the significant Nelligan deposit, which contains substantial inferred and indicated gold resources. Additionally, the nearby former Lac Shortt mine adds historical context to the area's mining pedigree, with a recorded production of 2.7 million tonnes at a notable grade of 4.6 g/t Au.
Midland's Commitment to Exploration
Midland Exploration is committed to tapping into the mineral wealth of Quebec, concentrating on the exploration of gold and critical metals. By forging robust partnerships with industry giants such as Barrick Mining and others, Midland is positioning itself for not only exploration success but also for the discovery of new world-class mineral deposits. The company is actively seeking new opportunities to elevate its portfolio and enhance shareholder value.
Contact Midland Exploration
For additional information regarding this agreement and Midland's strategic initiatives, interested parties can reach out to:
Gino Roger, President and Chief Executive Officer
Tel.: 450 420-5977
Fax: 450 420-5978
Email: info@midlandexploration.com
Website: www.midlandexploration.com
Frequently Asked Questions
What is the Lewis gold property?
The Lewis gold property is an exploration site owned by Midland Exploration and located strategically in Quebec, notable for its mineral potential.
What are the terms of the agreement with Barrick?
Barrick can earn up to a 75% interest in the Lewis property through a series of cash payments and exploration expenditures totaling $12 million.
How will Barrick’s involvement impact Midland?
Barrick’s involvement not only brings significant funding for exploration but also expertise in managing the mining processes, which could lead to discovery and production phases.
What is the historical significance of the area?
The area around the Lewis property has historical mines such as Lac Shortt, known for high-grade gold production, highlighting its rich mining history.
How can I learn about Midland's latest developments?
For the latest updates, you can visit Midland’s official website or contact their office through the provided contact details.
