Yamana Gold has announced that it has agreed to acquire from Globex Mining Enterprises Inc. the Francoeur, Arntfield and Lac Fortune gold properties adjoining the company’s Wasamac project, as well as additional claims in the Beuchastel township to the east of the Wasamac project, Canada.
The acquisition of the Globex claims will significantly add to the exploration upside of the Wasamac project, and it is consistent with Yamana’s strategy to expand its presence in the Abitibi-Témiscamingue Region of Quebec. Historical drilling, previous production from Francoeur and Arntfield, both former operating mines, and recent trenching and exploration work by Globex has defined a 6 km western continuation of the Wasa shear – located immediately north of the prolific Cadillac Break – with mineralisation similar to that at Wasamac. Data from the Globex properties and the adjoining Wasamac project will be consolidated, and exploration drilling is expected to begin during 2H21 with the objective of adding mineral resources that could extend mine life or enhance production at the proposed Wasamac mine.
The Globex properties also cover several historical gold producers located along the shear zone and, notwithstanding past production, exploration will build on a historical drill database of 1024 drill holes by drilling several high potential targets with significant gold intercepts located outside of the historically mined areas as well as extending known mineral resources.
Wasamac, Francoeur and Arntfield have recorded past production of over 823 000 oz of gold, including 508 642 oz at Francoeur (2.60 million t at 6.1 g/t); 252 923 oz at Wasamac (1.89 million t at 4.2 g/t); and 61 524 oz at Arntfield (480 000 t at 4 g/t). The presence of significant mineralization and excellent exploration upside adjacent to a planned mine site underscores the potential to add significant value in the short term to the Wasamac project.
Pursuant to the terms of the agreement, Yamana will pay an initial amount of CAN$4 million on closing, which at the direction of Globex will be paid in shares, with the remaining payment of CAN$11 million payable over 4 years in either cash or shares at the election of Globex. In addition, Globex will receive a 2% gross metal royalty from Yamana, of which 0.5% may be bought back at any time by Yamana for CAN$1.5 million, following which the royalty would be reduced to a 1.5% gross metal royalty.
The acquisition also includes certain other claims in Malartic township adjacent to the Camflo property which the company previously acquired and has transferred to the Canadian Malartic General Partnership. These claims will be made available to the partnership also.
Closing of the Transaction is expected to take place on or around 21 June 2021, subject to usual closing conditions.
Read the article online at: https://www.globalminingreview.com/finance-business/14062021/yamana-gold-announces-acquisition-of-properties-adjoining-wasamac-project/