NSRs AND FCIs
Golden Valley Mines entered into an option agreement between Golden Valley Mines and Val-d’Or Mining Corporation in April, 2017 with respect to a group of properties located in the Abitibi Greenstone Belt of North-Eastern Ontario and North-Western Québec. In November, 2019, the option agreement was amended to document, among other things, a waiver of expenditure requirements required in order to maintain the option, acceleration of vesting of the option as well as changes to the buyback provisions of the royalty on Net Smelter Returns granted to the Golden Valley Mines.
As consideration for the option and in accordance with the terms of the option agreement, Val-d’Or Mining will issue Golden Valley Mines an aggregate 16,666,668 common shares, issuable as to 25% on each of December 31, 2018 (done), December 31, 2019, June 30, 2020 and December 31, 2020.
Golden Valley Mines retains a 1.25% net smelter returns, which is subject to certain partial buyback provisions. Golden Valley Mines will also receive 20% of the proceeds of all third-party transactions pertaining to the group of properties that Val-d’Or Mining enters into and announces on or before December 31, 2022.
The group of properties includes the Oregon Prospect and Magoma Prospect – Val-d’Or Mining’s primary focus for the 2019 exploration program. They are both located in the Abibiti Greenstone Belt in northwestern Québec, and within close proximity to the mining and exploration center of Val-d’Or Québec.
The Oregon Prospect covers an elongated granodiorite intrusion that dips to the northeast and lies along a northwest southeast axis. The granodiorite part of the property hosts the historic Oregon Showing (Corps Minéralisé 32/C05-0011. MRNF SIGEOM). This mineral occurrence occurs within a fracture zone that hosts a series of parallel quartz stringers mineralized with pyrite. It has been traced out by previous exploration programs over a strike length of one hundred and twenty metres. The primary metallogenic target at the Oregon Prospect is an intrusive-hosted, bulk tonnage gold deposit.
The Magoma Prospect overlies the felsic volcanic rocks of the Hunter Mine Group and is situated midway between the Rouyn-Noranda and Normetal mining camps. The Magoma gold showing occurs within an extensive network of quartz veins controlled by intense shearing that cuts through tuffacaeous and porphyritic units of rhyolite. This geological setting is proximal to a fault splay from the regional gold bearing Macamic Deformation Corridor that passes through the northeast part of the property. The primary metallogenic target at the Magoma Prospect is an orogenic gold deposit spatially related to a deformation zone hosted in altered and mineralized metavolcanic rocks.
Diamond drilling activities are expected to commence on the two properties following completion of a short, follow-up program of geological mapping, prospecting and sampling. The objective of this work is two-fold: 1) ground-truthing of defined geophysical anomalies from the 2018 surveys completed by Val-d’Or Mining, and 2) complete detailed mapping and characterization of the historical mineralization, to assist with drill target selection.
Additional exploration activities have been completed or are also planned by Val-d’Or Mining on other optioned properties in order to advance them towards “drill-ready” status either internally or through a joint venture.