Lithoquest Resources Inc (CVE:LDI) (OTCMKTS:CWVWF) (FRA:28U0) announced it has signed an option agreement with Landore Resources Canada Inc to acquire a 100% interest in the Miminiska Gold Project and the Keezhik Gold Project, both of which are located in northwest Ontario.
The company said the projects are situated within the Miminiska-Fort Hope greenstone belt and host drill-confirmed gold mineralization that is similar in style to the nearby Musselwhite gold mine owned by Newmont Mining Corporation (NYSE:NEM).
“Large land packages with extensive gold mineralization, a significant historical database and excellent discovery potential are rarely available. The company has assessed many gold projects in the last 12 months and these properties stood out as an exceptional opportunity to add value for investors,” Lithoquest Resources CEO Bruce Counts said in a statement.
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“Lithoquest intends to immediately evaluate the existing data prior to conducting field work on both projects in the summer of 2021. The field work will provide a foundation for a drill program in early 2022,” Counts added.
Included in the option agreement is an extensive exploration database with more than 40,000 metres of historical drilling results.
The company noted that the historical data suggests that there is potential on both projects to expand the known zones of gold mineralization, as well as make new discoveries.
In order to acquire both projects, Lithoquest is required to pay Landore about C$1.4 million in cash, plus $2.7 million in either cash or stock in staged payments over a 24-month period.
As well, Landore will retain a 2% net smelter royalty (NSR) on both projects, although Lithoquest can buy back 1% of the royalty by paying Landore $1 million at any time.
Lithoquest added that by acquiring the Miminiska and Keezhik projects, along with its recently-staked Attwood Project, it now has a commanding land position in the Fort Hope Greenstone Belt with projects that range from grassroots to early discovery.
Lithoquest Resources, formerly Lithoquest Diamonds Inc, changed its name in late 2020 after placing its North Kimberley Diamond Project in Western Australia on care and maintenance in July until financing conditions improve in the diamond industry.
At the time, the Vancouver, British Columbia-based company said it was actively reviewing other mineral projects with the objective to secure, through acquisition or joint venture, one or more projects that offer significant discovery potential.
Contact Sean at sean@proactiveinvestors.com