Business
Melkior Resources Announces $110 Million Option/JV Agreement with Kirkland Lake Gold to Earn up to 75% of Carscallen
Timmins, Ontario. - TheNewswire - Melkior Resources Inc. ("Melkior" or the "Company") (TSXV:MKR) is pleased to announce the closing of a strategic partnership w
About this update from Melkior Resources Inc.
[{"type":"text","content":"Timmins, Ontario. - TheNewswire - Melkior Resources Inc. (\"Melkior\" or the \"Company\") (TSXV:MKR) is pleased to announce the closing of a strategic partnership with Kirkland Lake Gold Ltd. (\"Kirkland\"). Under the terms of an option agreement entered into between the Company and Kirkland (the \"Option Agreement\"), Melkior has granted Kirkland the right to earn-in up to a 75% interest in the Carscallen Project located 25 kilometres west of Timmins (the \"Property\"). Kirkland will also be granted the right to acquire up to 1,250,000 Units of the Company on a private placement basis. Option to Earn-In and Joint Venture Under the terms of the Option Agreement, Kirkland has an option to earn a 50% interest in the Property in consideration for completing $10 million in exploration expenditures over a period of five years (the \"Phase 1 Expenditures\"). Kirkland has a minimum commitment of $3 million during the first two years of the Option Period (the \"Minimum Commitment\"), which includes $1.5 million and a minimum of 3000 meters of drilling to be completed in the first year. Kirkland will act as the Operator of the Property during the Option Period. All expenditures beyond the Minimum Commitment are optional. Should Kirkland fail to incur the Phase 1 Expenditures during the Option Period, Kirkland's option to acquire the 50% interest shall expire. Upon Kirkland completing the Phase 1 Expenditures and earning its 50% interest, the parties shall enter into a joint venture agreement to carry on operations with respect to the Property (the \"Joint Venture\"). Upon the formation of a Joint Venture, Kirkland will have the right to earn an additional 25% interest in the Property by incurring exploration expenditures of $100 million within the first five years of the formation of the Joint Venture. Any additional funds required beyond the $100 million will be contributed by the joint venture parties based on their proportional joint venture interests (75%/25%). Private Placement As originally announced May 20, 2020 and further announced in July and August 2020, Melkior announces it has closed a subscription by Kirkland of 1,250,000 units of the Company at a price of $0.80 per unit (a \"Unit\") on a private placement basis for total gross proceeds of $1 million. Each Unit will consist of one common share and one common share purchase ...