THE BOURSE WHISPERER: Australian mineral exploration company, Corazon Mining (ASX:CZN) has secured an option to acquire the Beaucage Lake gold project, in the Lynn Lake mining district of central Canada.
The Beaucage project is located in close proximity to Corazon’s core asset, the Lynn Lake nickel-copper sulphide project.
The company said the acquisition further expands its strategic exploration ground holding in the Lynn Lake district.
“This exciting new exploration opportunity offers immediate high priority drill targets within a mining friendly district supported by excellent infrastructure and a region of significant mines gold deposits, such as the 2 million ounce Maclellan gold mine currently looking to be developed,” Corazon Mining managing director Brett Smith said in the company’s announcement to the Australian Securities Exchange.
“This is an exciting exploration play for Corazon and will receive priority attention.”
The Beaucage project is situated approximately 45 kilometres southeast of Lynn Lake, which the company considers provides it with an additional exploration focus while complementing its Lynn Lake nickel-copper project and the Barrington Lake copper deposit.
Corazon project Locations – Lynn Lake district, Canada. Source: Company announcement
Corazon said it believes the high tenor of gold mineralisation, over a large area near Beaucage Lake, may be indicative of a large scale mineralised system.
The company has negotiated terms, which it said minimises the up-front cash impact of the acquisition.
Corazon has the right to acquire 100 per cent equity in the Beaucage Lake gold project by:
– Payment of C$300,000 to the vendor in staged payments, including C$25,000 payable at the commencement of year 2, C$75,000 to be paid in year 3, C$100,000 to be paid in year 4 with an additional C$100,000 payable before the completion date at the end of year 4;
– Issuing 250,000 new ASX:CZN shares to the vendor; and
– Paying a sum of C$40,243 in-lieu of exploration on the mineral claims.
The C$40,243 payment will be reimbursed to Corazon by the provincial government of Manitoba, subsequent to exploration on the project.
The owner will retain a royalty on the project of 2.5 per cent, reducing to 1.5 per cent following the payment of C$1 million.