MANITOBA – QMX Gold Corp. has sold its Snow Lake gold project to another Toronto-based company, Liberty Mines, for US$20 million. Liberty has made a $1-million down payment, and the balance is due on closing that is expected to occur before the end of November 2013. Or Liberty may delay the closing to mid-January 2014 by paying an extension fee of US$100,000.
The Snow Lake property includes the New Britannia mine with associated plant, infrastructure, and equipment including a fully permitted 2,150-t/d mill and tailings facility. The property covers 104 km2 of claims and leases containing more than 10 known mineralized zones, including four gold deposits with 43-101 resources, three of which are historic production sites.
Liberty says the Snow Lake project provides medium term potential to develop a 80,000 oz/y producer with total cash costs estimated at C$882/oz Au. The property has measured and indicated resources of 5.47 million tonnes grading 4.14 g/t Au (728,000 oz contained gold), plus an inferred resource of 2.37 million tonnes at 4.43 g/t Au (336,700 oz contained gold).
QMX said it will use the proceeds of the sale to pay down debt.
Details of the transaction can be found on the Liberty website, LibertyMines.com.