Wesdome and Windarra announce closing of the Magnacon purchase and execution of the Pukaskwa exploration and option agreement

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[{"type":"text","content":"\n\n\n\nTORONTO, June 9 /CNW/ - Wesdome Gold Mines Ltd. ("Wesdome") and Windarra\nMinerals Ltd. ("Windarra") are pleased to announce that they have: (a)\ncompleted the sale to Wesdome of Windarra's interest, being approximately\n22.72%, in the patented claims/leases referred to as the Magnacon Property\n(the "Magnacon Acquisition"); and (b) entered into an exploration and option\nagreement (the "Option Agreement") pursuant to which Wesdome has the exclusive\nright to conduct exploration within and the option (the "Pukaskwa Option") to\nearn up to a 60% undivided working interest in certain mining claims owned by\nWindarra and referred to as the Pukaskwa Claims. The terms of the Magnacon\nAcquisition and the Pukaskwa Option were announced by the parties on May 11,\n2009.\n\n\nMagnacon Acquisition\n--------------------\n\n\nFollowing the Magnacon Acquisition, Wesdome owns 100% of the Magnacon\nProperty, subject to a 1% net smelter royalty in favour of Windarra granted in\nconnection with the acquisition. Windarra was also granted the right to have\nWesdome mill up to a maximum of 50,000 metric tonnes of ore per year from\nproperties currently owned by Windarra at a cost equal to the production cost\nof such milling plus $2.00 per tonne of ore milled. In addition, the joint\nventure agreement between Wesdome and Windarra dated March 3, 2000, which\napplied to the Magnacon Property and the East Property (as defined therein),\nnow no longer applies to the Magnacon Property, but continues to apply to the\nEast Property.\n\n\nPukaskwa Option\n---------------\n\n\nUnder the Option Agreement, Wesdome has the right to earn up to a 60%\nundivided interest in the Pukaskwa Claims by expending or causing to be\nexpended an aggregate of $3,000,000 in exploration and development expenses on\nthe Pukaskwa Claims by certain dates over the period commencing on June 5,\n2009 and continuing until June 30, 2014 (the "Option Period").\n\n\nUpon making or causing to be made expenditures totalling $1,500,000,\nWesdome shall have earned a 30% undivided working interest in the Pukaskwa\nClaims and upon making or causing to be made expenditures totalling\n$3,000,000, Wesdome shall have earned a further 30% interest in the Pukaskwa\nClaims such that Wesdome shall have earned an aggregate 60% intere...

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