Osisko has agreed to acquire interests in Urban-Barry properties, including the Gladiator and Barry deposits, and the adjoining Duke and Lac Barry properties, all of which are located in Québec’s Eeyou Istchee James Bay region
Canada-based Osisko Mining has signed a binding agreement with Bonterra Resources to acquire the exploration, earn-in and joint venture interests in the latter’s properties in Québec.
Under the terms of the agreement, Osisko will acquire stakes in Urban-Barry properties, which comprise the Gladiator and Barry deposits, and the adjoining Duke and Lac Barry properties.
All the properties are located in Québec’s Eeyou Istchee James Bay region and host a total of 496 claims spanning a total area of 22,508ha.
Osisko will acquire the remaining 70% stake in the Duke property, and an 85% stake in the Lac Barry property from Bonterra.
In exchange, the Canadian mining company will make a C$30m ($22m) investment over a period of three years, to advance the development of the acquired properties.
The current earn-in and joint venture agreement will be formalised by the parties executing a definitive exploration earn-in and joint venture agreement, expected on 31 October 2023.
Bonterra executive chairman Cesar Gonzalez said: “Through this strategic partnership with Osisko, Bonterra is poised for an exciting new chapter in the development of our Urban-Barry property and the surrounding Duke and Lac Barry properties.
“With Osisko’s substantial $30m investment over three years and deep understanding of this prolific gold camp, we expect to unlock the full exploration potential of the Properties.
“Importantly, the earn-in and joint venture agreement does not include the Bachelor-Desmaraisville property, which hosts the Bachelor Mill Complex and where exploration drilling is ongoing and 10,000 meters are expected to be drilled before year-end.”
Upon execution of a definitive agreement, Osisko can obtain a 70% stake in the properties acquired from Bonterra, subject to certain terms, including an initial up-front payment of C$5m.
The terms also include completing C$30m in work expenditures on the properties, with a minimum spending commitment of C$10m per annum over a period of three years.
Osisko will be the operator for the properties during the exploration earn-in period and can carry over work expenditures from year to year.
Once the company earns 70% interest in the properties, they will be operated as a joint venture (JV), with Osisko as the operator.
The proposed JV is subject to the completion of satisfactory due diligence by Osisko, the execution of the definitive agreement and the approval of the TSX Venture Exchange.