Business
Val-d'Or Mining Enters into Option Agreement with Eldorado Gold, NSR Reduction Agreement and Provides Update on Property Portfolio
Val-d'Or, Quebec--(Newsfile Corp. - May 30, 2023) - Val-d'Or Mining Corporation (TSXV: VZZ) (the ...
About this update from Val-d'or Mining Corporation
[{"type":"text","content":"Val-d'Or Mining Enters into Option Agreement with Eldorado Gold, NSR Reduction Agreement and Provides Update on Property PortfolioVal-d'Or, Quebec--(Newsfile Corp. - May 30, 2023) - Val-d'Or Mining Corporation (TSXV: VZZ) (the \"Company\") announces that it has entered into an additional option agreement (the \"Option Agreement\") dated May 26, 2023 with Eldorado Gold (Québec) Inc. (\"Eldorado\"), a wholly owned subsidiary of Eldorado Gold Corporation. Eldorado's potential total expenditures under the Option Agreement, the Assigned Option and the November Option, as described below, amount to $34.5 million.The Option Agreement enables Eldorado to earn up to an 80% interest in the Company's Baden, Plumber, Island 27 and Matachewan Prospects (the \"Properties\") as more particularly described below, and all located in the area of Matachewan, Northeastern Ontario. The Company's assumption of the rights and obligations under an option agreement with Eldorado from Gold Royalty Corp. (the \"Assigned Option\") for the Claw Lake Gold Prospect, the Cook Lake Prospect, the Murdock Creek Prospect and the Perestroika Prospect (the \"Assigned Properties\") as announced in the Company's news release of January 30, 2023 allows Eldorado to fund expenditures on the Assigned Properties of up to $10,500,000 over a period of 5 years. Further, the Option Agreements dated November 30, 2021 with Eldorado (together the \"November Option\") for the Blue Mountain, Victoria Creek and Perestroika Ouest Prospects (the \"November Properties\") allows Eldorado to fund expenditures on the November Properties of up to $4,000,000 over a period of 5 years. The Company is pleased to note that all the above transactions are in line with the Company's business model of identification and generation of new projects (prospect generation), and projects which are in the early stages of exploration, and also provide the Company with exposure to the increased value of its properties as a result of Eldorado's exploration efforts while avoiding dilution to its own share capital.Eldorado Option Agreement Under the terms of the Option Agreement, Eldorado can earn up to an 80% interest in the Baden, Plumber, Island 27 and Matachewan Prospects as described below (together, the \"Properties\").The Company has granted Eldorado the sole and exclusive option to earn, at a mini...