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Wallbridge Expands Detour-Fenelon Footprint with Option on Casault Property

Jun 18, 2020

Wallbridge Mining Company Limited has entered into an option agreement to acquire up to a 65% interest in the Casault gold property, which is contiguous to both its Martiniere and Detour East gold properties, from Midland Exploration Inc.

“Optioning the Casault Gold Property consolidates Wallbridge’s district-scale land position along the Detour-Fenelon Gold Trend,” said President & CEO Marz Kord. “This addition unites the Company’s project holdings seamlessly to the Quebec/Ontario border and gives the Company control of over 900 km2 of prospective exploration/development ground in Quebec’s prolific Northern Abitibi Greenstone Belt.”

 Midland discovered in 2017 the Vortex Zone, a significant gold system on the Casault Gold Property, and this agreement between the two companies sets the stage for additional discoveries.

 Casault Gold Property Highlights:

  • Comprises 322 claims covering approximately 177 km2 between Wallbridge’s Martiniere and Detour East properties (see Fig.1).
  • Located about 40 km east of the Detour Lake gold mine which produced over 600,000 ounces of gold in 2019.
  • Hosts the Vortex Zone, a syenite-associated disseminated gold system grading up to 1.38 g/t gold over 26.5 metres and traced over a distance of 1.5 km.
  • Strike length covers over 20 km of the Sunday Lake Deformation Zone.

Terms of the Agreement:

Wallbridge can acquire an undivided 50% interest (the “First Option”) in the Casault Gold Property, by making an initial expenditure (the “Initial Expenditure”) and subsequently incurring aggregate expenditures (the “Aggregate Expenditures”) as follows:

  • Initial Firm Expenditure of $750,000 on or before June 30, 2021;
  • Aggregate Expenditures of at least $1,750,000 on or before June 30, 2022, at Wallbridge’s option;
  • Aggregate Expenditures of $3,000,000 on or before June 30, 2023, at Wallbridge’s option; and
  • Aggregate Expenditures of $5,000,000 on or before June 30, 2024, at Wallbridge’s option.

Should Wallbridge’s expenditures fall short of the required amount in any specified period, it may elect to make a cash payment to Midland in an amount equal to the shortfall in full satisfaction of the expenditure commitment for such period.

In addition, Wallbridge shall make cash payments to Midland in the aggregate amount of $600,000 as follows:

  • $100,000 within five days following execution of the Agreement;
  • $110,000 on or before June 30, 2021;
  • $110,000 on or before June 30, 2022;
  • $130,000 on or before June 30, 2023; and
  • $150,000 on or before June 30, 2024.

Upon exercise of the First Option, Wallbridge may, at its sole discretion, increase its undivided interest in the Casault Gold Property to 65% (the “Second Option”), by incurring additional expenditures and/or cash payments, at the sole election of Wallbridge, of $6,000,000 within a period two years from the date of exercise of the First Option.

Should Wallbridge elect, at its sole discretion, to not earn, or to cease to earn, the additional undivided interest pursuant to the Second Option, the parties shall then form a joint venture (the “Joint Venture”) to manage the Casault Gold Property. Wallbridge shall be the operator of the Joint Venture as long as it has at least a 50% participating interest in the Joint Venture, or it has not elected to discontinue operatorship of the Joint Venture.

Tags: Quebec / Deals & Financial / Gold / All Articles