North of 60 Mining News - The mining newspaper for Alaska and Canada's North

Pebble Partnership copper gold molybdenum mine project Alaska Northern Dynasty NAK NDM

Goldstrike attracts Newmont to Yukon


Last updated 1/18/2018 at 7:30pm

Goldstrike Resources Ltd. March 3 reported that Newmont Mining Corp. has agreed to invest as much as C$53 million to earn up to a 75 percent stake in Goldstrike's Plateau gold property in the Yukon.

The agreement includes a C$6 million private placement financing under which Newmont will purchase 12.71 million Goldstrike shares at C47.4 cents each.

As a result, Newmont will have the right to earn an initial 51 interest in Plateau by paying C$8 million to Goldstrike; investing C$17.4 million on exploration at Plateau: and completing a NI 43-101 resources estimate on the property.

If Newmont decides to up its ownership of Plateau to 75 percent, it must invest another C$21.4 in exploration and complete a feasibility study for Plateau by the end of 2027.

If it does not complete either phase of the earn-in, its interest in Plateau will revert to 49 percent.

After earning 75 percent interest in Plateau, Newmont must fund all costs until it delivers a program and budget for the development of the first mine on the property.

At this point, Goldstrike has a financing option under which Newmont would fund all costs relating to Plateau, including all mine development costs, and Goldstrike would pay back its share of the costs from 80 percent of the exploration company's share of cash flow from the mine.

"Goldstrike is now fully funded to move forward and unlock the full potential of the district-scale Plateau gold project," said Goldstrike President and CEO Terrence King.

In recent years, Goldstrike has identified numerous zones with pervasive visible gold along a trend that stretches some 50 kilometers (31 miles) across the 350-square-kilometer (135 square miles) Plateau property.

With Newmont now leading the exploration at Plateau, Goldstrike will focus on Lucky Strike, a gold property in Yukon's White Gold district.



Reader Comments


Our Family of Publications Includes:

Powered by ROAR Online Publication Software from Lions Light Corporation
© Copyright 2019