Probe will acquire Croinor gold property, in exchange for a total consideration of $4.5m, in a combination of cash and common shares, comprising $2m in cash and common shares worth $2.5m, along with any reclamation liabilities
Probe Gold Val-d’Or properties with the Croinor acquisition. (Credit: Probe Gold Inc.)
Canada-based gold exploration company Probe Gold has signed a definitive purchase and sale agreement with Monarch Mining to fully acquire the latter’s Croinor Gold property in Canada.
Under the terms of the agreement, Probe will pay a total consideration of $4.5m, in a combination of cash and common shares, upon closing.
The company will issue its common shares to Monarch, equivalent to $2.5m based on a 10-day volume weighted average price (VWAP) of Probe’s common shares on TSX.
It will pay Monarch $2m in cash and will assume any reclamation liabilities related to the past-producing Croinor mine.
The transaction is expected to close in the coming weeks, subject to receipt of all necessary regulatory and other approvals, and other customary closing conditions.
The deal will extend its land package immediately to the east of its Novador project and increases its landholdings in Val-d’Or to 600km2, said Probe.
Probe president and CEO David Palmer said: “The Croinor property is a highly strategic acquisition for a number of reasons, it ties into our current development model in Val-d’Or; increases our current resource inventory by 228,000 ounces of high-grade gold.
“Our goal is to begin work immediately, upon closing, to advance this project and bring it under the umbrella of our Novador development plans.
“We see the ability to increase our resource base, and ultimately our production plans, with this acquisition and add significant value to shareholders.”
The Croinor gold property is located adjacent to Probe’s Megiscane property in Val-d’Or East and falls within the scope of the Novador Development project.
The property consists of one mining lease with 337 claims and covers a total of 152km2 area.
It is underlain by two major lithological packages, the dominantly volcanic Assup Domain in the north and the dominantly sedimentary Garden Island Domain in the south.
Croinor is transected by Garden Island Deformation Corridor (GIDC) in a northwest-southeast direction, a major fault following the contact between the Assup and Garden Island domains.
The property currently hosts a high-grade, measured and indicated gold resource of 187,900 ounces of gold at 6.47g/t and inferred mineral resource of 39,800 ounces of gold at 6.19g/t.