Eastmain Mine project Credit: Eastmain
QUEBEC – Eastmain Resources has optioned the Ruby Hill East and West properties to Benz Mining. These holdings are directly west of the Eastmain Mine project, which was optioned to Benz last August.
Under the terms of the option agreement, Benz may earn up to a 75% interest in the Ruby Hill East and West exploration-stage projects by making cash payments to Eastmain totalling $375,000 ($200,000 of which is potentially payable in shares), as well as issuing 2 million Benz shares and 4 million warrants.
Benz may then earn a further 25% stake in the two properties by paying Eastmain $100,000, which may be payable in shares. Once Benz earns a 100% interest in the holdings, Eastmain will retain a 1% net smelter return royalty, 0.5% of which may be purchased for $500,000.
Eastmain has also amended the work commitments portion of the option agreement with Benz for the Eastmain Mine project to accommodate government restrictions in place due to COVID-19: the $500,000 required exploration expenditure for this year has now been moved back to 2022. Benz may earn up to a 100% interest in this property.
“Monetizing the Ruby Hill properties and the Eastmain mine project allows us to focus on our key James Bay gold assets,” Blair Schultz, the company’s interim president and CEO, said in a release.
The past-producing 186-sq.-km Eastmain Mine project is in the James Bay region of Quebec, and contains indicated resources of 899,000 tonnes grading 8.19 g/t gold for a total of 236,500 oz. with further inferred resources of 579,000 tonnes at 7.48 g/t gold totalling 139,300 oz. The Ruby Hill East block is continuous with the Eastmain Mine property whereas the Ruby Hill West area is approximately 30 km northwest of the Eastmain Mine deposit.
Eastmain’s principal asset is the Clearwater gold property in Quebec’s James Bay region.
For more information, visit www.Eastmain.com.