Barrick Gold (TSX: ABX) (NYSE: GOLD) and Midland Exploration (TSX-V: MD) have inked a deal that gives the world’s second largest bullion producer the right to earn into the junior’s Patris gold property in Quebec, Canada.
As part of the deal, Barrick will make cash payments of $1.0 million (USD $760,000) and exploration work totalling $16.57 million (USD $12.35m) over eight years, which would give it up to a 75% stake in Patris.
The Toronto-based miner will be the operator of the work carried out under the agreement, Midland said.
“We are delighted to welcome Barrick as one of our new high-quality partners who will ensure the progress of future exploration work on this excellent gold project,” chef executive Gino Rodger said.
Midland and Barrick have also agreed to negotiate a definitive earn-in and joint venture agreement upon the satisfactory completion of due diligence by the gold giant and the receipt of any required regulatory approvals.
The Patris gold property, northeast of Rouyan-Noranda, comprises 298 claims covering a surface area of about 117 km2, very close to the Doyon/Westwood-Bousquet-La Ronde gold mining camp.