Canada’s Kenorland Minerals Ltd. has announced that it has entered into a property option agreement with an offshoot of Barrick Gold Corporation. Under the deal, the company agreed to grant to Barrick the option to buy up to an 80% stake in the South Uchi project in the Red Lake district of Northwestern Ontario.
“Pursuant to the Option Agreement, Barrick can earn an initial 70% inter-est in the Project by incurring an aggregate of $6,000,000 in mineral ex-ploration expenditures on or before the sixth anniversary of the Option Agreement,” Kenorland Minerals said in a statement.
Of these, C$3 million (US$2.4 million) are guaranteed expenditures within the first three years, according to the statement.
Barrick can also “deliver a technical report in respect of the Project that establishes a mineral resource of at least one million ounces of gold,” Kenorland Minerals said.