First Mining Gold Corp. (TSX:FF, OTCQX:FFMGF) has announced that through its wholly-owned subsidiary, Duparquet Gold Mines Inc, it has entered into an agreement with IAMGOLD Corp (TSX:IMG) to acquire the Porcupine East property in a strategic consolidation that will increase its land position around its Quebec assets by 50%.
The Vancouver-based gold developer noted that the highly prospective claims at Porcupine East are located in between its Duparquet, Pitt and Duquesne gold projects and will provide First Mining with a contiguous property package covering 19 kilometres (km) of favourable stratigraphy in Quebec, in the heart of the Abitibi Greenstone Belt.
“We are excited to embark on robust engineering and exploration programs that will continue to demonstrate the highly prospective nature of our Duparquet Gold Project and the surrounding projects,” First Mining CEO Dan Wilton said in a statement.
“We are also very pleased to welcome IAMGOLD as a shareholder of First Mining. IAMGOLD has a significant presence in both Ontario and Quebec, and as we continue to advance both Springpole and Duparquet, we look forward to other opportunities to work together," he added.
READ: First Mining Gold reports more than 3M measured and indicated oz of gold in Duparquet project technical report
The total consideration to IAMGOLD includes:
- 2.5 million First Mining common shares upon closing of the transaction;
- The granting of a 1.5% net smelter return royalty on the Porcupine East property to IAMGOLD upon closing of the transaction;
- A future contingent payment of $500,000, in cash or First Mining shares, on the declaration of a minimum of 350,000 koz gold resource on the Porcupine East Property; and
- A future contingent payment of $1 million, in cash or First Mining shares, to be paid within 12 months of commercial production being declared at the Duparquet Gold Project, as long as any major surface infrastructure related to the Duparquet Gold Project has been constructed on the Porcupine East Property.
The Porcupine East Property is strategically located between First Mining's Duparquet Gold Project and First Mining's Pitt and Duquesne Gold Projects. With the addition of the Porcupine East Property, First Mining noted that it will increase its land position by 1,868 hectares for a total land package of over 5,800 hectares in Quebec. It will also provide an additional 7 km of strategic ground along the prolific Destor-Porcupine Fault Zone, increasing First Mining's total exposure to 19 km, including numerous secondary mineralized structures. The new amalgamated property now includes three past-producing gold mines, one gold deposit and 17 mineral showings.
First Mining said the transaction is expected to close on or before February 3, 2023.
First Mining is a gold developer advancing a portfolio of gold projects in Canada, with the most advanced being the Springpole Gold Project in northwestern Ontario, one of the largest undeveloped gold projects in Canada. The explorer also owns the Cameron, Duparquet, Duquesne and Pitt gold projects, all advanced-stage gold projects in Ontario and Quebec. Its gold project interests include Pickle Crow and Hope Brook, an equity interest in Treasury Metals Inc, and a portfolio of 21 gold royalties.
Contact the author at stephen.gunnion@proactiveinvestors.com