Melkior Resources Inc said Barrick Gold Corporation has issued a termination notice for the earn-in and joint venture agreement it had struck with Barrick to advance the development of the White Lake project.
Under the agreement signed on November 20, 2020, Barrick can earn 75% of the asset by spending C$4 million on exploration over five years.
Now, Melkior said Barrick had advised that it is terminating the deal in accordance with the terms of the first anniversary of the deal without satisfying the minimum exploration expenditures.
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Melkior said Barrick was prevented from funding the project due to objections and concerns raised by a local First Nation.
On December 16, 2020, the Ministry of Energy, Northern Development and Mines issued a Notice of Withdrawal and a Notice of Caution affecting the Northern Lake Superior Region and the White Lake property.
Due to the Ministry’s notice and the First Nation’s concerns regarding exploration activities, Melkior said it now intends to apply to the Ministry for an order suspending the annual work requirements on White Lake.
If the Ministry accepts the company’s request, Melkior said the property will remain in good standing until the company can resume exploration expenditures.
The company said it anticipates receiving the Ministry’s approval. But if approval is not granted, Melkior said it may apply current exploration credit reserves and/or make payments in lieu of exploration expenditures to keep the property in good standing.
Melkior also said it intends to work with the MNDMNRF and the First Nation on possible paths toward mutually acceptable exploration work on and development of the White Lake property.
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