VANCOUVER — The exploration game is afoot for Carlisle Goldfields (TSX: CGJ; US-OTC: CGJCF) across its expansive land package at the Lynn Lake gold camp in Manitoba. The company never lacked drill targets or historic data on the 350 km2 property, but had opted to act conservatively due to its junior stature and the unpredictable nature of capital markets over the past few years.
The scenario changed for Carlisle in late 2014, when it signed a strategic agreement with mid-tier producer AuRico Gold (TSX: AUQ; NYSE: AUQ) that brought in an influx of cash and a mutually beneficial joint venture arrangement. The partners announced in mid-January that expenditures at Lynn Lake will total around $13 million this year, with roughly $4 million earmarked for growth oriented exploration programs.
Back in November AuRico subscribed for 70.6 million common shares in Carlisle – or 19.9% of the company for $5.6 million at 8¢ per share – and signed a joint venture agreement to earn a 25% stake in Lynn Lake for an initial $5 million cash contribution. AuRico can also earn up to another 35% interest by spending $20 million over three years and delivering a feasibility study.
The goal posts again shifted in April when AuRico arranged a $1.5-billion merger with Alamos Gold (TSX: AGI; NYSE: AGI). According to president and CEO Abraham Drost, however, Carlisle remains optimistic about Lynn Lake's prospects despite the fluidity in the partnership dynamic.
Read the complete article at NorthernMiner.com/news/carlisle