Midland Signs Definitive Agreement With Barrick for the Patris Gold Property
May 15 2023 - 6:30AM
Midland Exploration Inc. ("Midland")
(TSX-V: MD) is pleased to announce the signing of a
definitive option agreement with a wholly-owned indirect subsidiary
of Barrick Gold Corporation (
"Barrick") for its
Patris gold property (the “
Property”), currently
wholly-owned by Midland and located about 35 kilometres northeast
of the town of Rouyn-Noranda, Quebec (the “Transaction”).
Option Agreement
Pursuant to the Transaction, Barrick has the
right to acquire up to a 75% interest in the Property in
consideration for cash payments totaling C$1,017,500 and
exploration work totaling C$16,575,000, over an eight-year period.
Barrick will be the operator of the work carried out under the
Transaction.
Barrick may earn an initial 51% interest in the
Property over a period of four years, by paying in cash C$392,500
to Midland and funding expenditures of at least C$4,000,000,
including a guaranteed amount of C$3,000,000, at which point
Barrick and Midland will form a joint venture (the “JV”).
In the following two years, Barrick may earn an
additional 9% in the JV, for a 60% interest in consideration for
cash payments totalling C$265,000 and exploration work expenditures
of at least C$2,000,000 (the “First JV Funding Option”).
Finally, in the subsequent two years, Barrick
may earn an additional 15% in the JV, for a total 75% interest in
consideration for cash payments totalling C$360,000 and exploration
work expenditures of at least C$10,575,000 (the “Second JV Funding
Option”).
If Barrick does not exercise or complete the
First JV Funding or the Second JV Funding Option, the JV interests
will be subject to any subsequent adjustments in ownership made in
accordance with the proportionate funding and dilution terms of the
JV agreement. Dilution below a 10% JV interest results in
conversion of the JV interest to a 2% NSR royalty with the right to
repurchase 50% of the NSR royalty (1% NSR) for a payment of
C$1,500,000.
About the Patris Property
The wholly-owned Patris project comprises 299
claims covering a surface area of about 117 square kilometres,
located less than 10 kilometres northwest of the prolific
Doyon/Westwood-Bousquet-La Ronde gold mining camp. The Patris
property offers excellent gold potential as it covers the
Manneville Fault over more than 8 kilometres and the La Pause
Fault over more than 10 kilometres, both recognized as subsidiary
faults to the well-known Destor-Porcupine Fault Zone.
Barrick will be preparing an exploration program
within the next weeks.
About Midland
Midland targets the excellent mineral potential
of Quebec to make the discovery of new world-class deposits of gold
and critical metals. Midland is proud to count on reputable
partners such as Barrick, BHP Canada Inc., Rio Tinto Exploration
Canada Inc., Wallbridge Mining Company Ltd, Probe Gold Inc., Agnico
Eagle Mines Limited, Osisko Development Corp., SOQUEM Inc.,
Brunswick Exploration Inc., Nunavik Mineral Exploration Fund, and
Abcourt Mines Inc. Midland prefers to work in partnership and
intends to quickly conclude additional agreements in regard to
newly acquired properties. Management is currently reviewing other
opportunities and projects to build up the Corporation portfolio
and generate shareholder value.
This press release was prepared by Mario Masson.
P.Geo., VP Exploration for Midland and Qualified Person as defined
by NI 43-101, who also approved the technical content of this press
release.
For further information, please consult
Midland’s website or contact:
Gino Roger, President and Chief Executive OfficerTel.:
450 420-5977Fax: 450 420-5978Email:
info@midlandexploration.comWebsite: www.midlandexploration.com
Neither TSX Venture Exchange nor its Regulation
Services Provider (as that term is defined in the policies of the
TSX Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
This press release may contain forward-looking
statements that are subject to known and unknown risks and
uncertainties that could cause actual results to vary materially
from targeted results. Such risks and uncertainties include those
described in Midland’s periodic reports including the annual report
or in the filings made by Midland from time to time with securities
regulatory authorities.
A photo accompanying this announcement is
available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/28c8bd5b-ec9f-4541-87b8-662537ff3ac7
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