Northern Superior Resources Inc. (TSX-V:SUP, OTCQX:NSUPF) announced that ONGold Resources, in which it holds a 72% stake, has reached agreements to acquire the Monument Bay and Domain Projects from Agnico Eagle Mines and Capella Minerals.
The acquisition consists of an initial consideration of $250,000 in cash and 8.7 million shares of ONGold, valued at $4.2 million.
Additionally, ONGold will make milestone-based payments totaling up to $21.5 million to Agnico Eagle under the Monument Bay agreement, and $0.5 million to both Agnico Eagle and Capella under the Domain agreement.
Closing of the acquisition is expected in December 2024, pending customary conditions.
Upon closing, Agnico Eagle will hold 15% and Northern Superior 62% of ONGold's total outstanding shares.
"We are thrilled to have reached this agreement with Agnico Eagle, a leader in the gold mining industry, and proud that ONGold is the new owner of these high-quality assets,” ONGold CEO Kyle Stanfield commented.
“ONGold is well-equipped to responsibly unlock the full potential of these assets. We believe the under-explored Monument Bay regional area holds great potential to create substantial value for our shareholders as well as the local community."
Monument Bay, located in northeastern Manitoba, presents a district-scale exploration opportunity, with over 232,000 meters of drilling across 800 core holes, and substantial potential for further discovery, ONGold highlighted.
The project hosts both gold and tungsten mineralization along a 40 kilometre strike length.
While the historic resource estimates for Monument Bay are no longer current under NI 43-101 standards, ONGold plans to use these to guide further exploration and future resource estimates.