Abitibi Metals boosts resource by 62% at B26 polymetallic deposit in Quebec
Indicated resources increased to 11.3 million tonnes from 6.9 Mt.
Québec-focused gold explorer O3 Mining (TSXV: OIII) announced Monday it has sold its Louvem property to a subsidiary of Eldorado Gold (TSX: ELD) for cash consideration of C$80,000 and the retention of a 0.5% net smelter return (NSR) royalty.
The Louvem property consists of 12 mining claims and is located 5 km east of Malartic, Québec. The project was originally acquired along with the Regcourt property under a March 2020 purchase agreement with Monarch Mining (TSX: GBAR).
O3 first acquired a 50% interest in the Louvem project by issuing 4,546 common stock and granting Monarch a 0.5% NSR royalty, and then acquired the remaining 50% by paying C$10,000 cash. The NSR has a buyback of C$300,000. Eldorado will now assume the obligation of this royalty.
As for the NSR royalty retained by O3, Eldorado is granted the right to repurchase half of that (equal to a 0.25% NSR interest) from O3 for an immediate payment of C$250,000, to be paid in a lump sum.
The sale provides O3 with additional funds to advance its portfolio of gold exploration assets in Val-d’Or, which span more than 650 sq. km. Together, these projects host 2.86 million gold ounces of measured and indicated resources at 1.18 g/t, and 770,000 gold ounces of inferred resources at 3.04 g/t.
Eldorado is owner of the Lamaque mine complex in Val-d’Or, consisting of the Triangle gold deposit located 2.5 km south of the historic world-class Lamaque and Sigma mines. It currently hosts proven and probable gold reserves of 877,000 ounces at 6.12 g/t gold to support a mine life of 11 years.
Shares of O3 Mining gained 1.4% to C$1.43 apiece by 2:20 p.m. ET. The company has a market capitalization of C$125.4 million. Eldorado Gold’s stock was up 0.4% at C$16.54 for a market capitalization of C$3.3 billion.
