ASX-listed Evolution Mining has secured an option from Northern Superior Resources to purchase a 75% undivided stake in the latter’s October gold project in Ontario, Canada.
To secure the option, Evolution Mining needs to spend a total of C$7m ($5.12m) in expenditure and make cash payments totalling C$1.1m ($804,976) to Northern Superior.
Featuring 1,284 claims that cover an area of 265km², the October gold project is located 105km from Timmins in northeastern Ontario.
Geologically, it is claimed to sit within the highly prospective Swayze Belt, which is estimated to have more than 15 million ounces of gold endowment.
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Historically, the property has been identified with several significant gold and base metal showings, including the Women River Showing, where samples have returned more than 16g/t of gold.
The project is also part of Northern Superior’s Ontario assets, which is subject to the spinout arrangement unveiled earlier this year.
However, the company noted that the deal with Evolution Mining will be in force and assigned to the spinoff company, post-completion of the spin-out.
Evolution Mining will have to incur at least C$1.5m ($1.09m) on or before the second anniversary of the earn-in deal.
This will be followed by at least a further C$1m ($731,796) in expenditure on or before the deal’s third anniversary.
The company will have to spend another C$2m ($1.46m) on or before the fourth anniversary and finally incur at least a further C$2.5m ($1.82m) on or before the fifth anniversary.
Of the C$1.1m ($804,976) to be paid to Northern Superior, Evolution will have to pay C$350,000 ($256,129) within 20 business days from the date of the agreement.
It will have to pay C$300,000 ($219,539) within 60 business days from the third anniversary of the agreement.
Finally, the company needs to pay C$450,000 ($329,308) within 60 business days from the deal’s fifth anniversary.
Northern Superior president and CEO Simon Marcotte said: “This partnership will significantly accelerate the development of the October gold project with the support of a leading gold producer equipped with substantial resources. Our Ontario spinoff company will therefore be able to focus on its primary asset, the coveted TPK project, renowned for hosting the largest gold grains in till anomaly in North America.
“Meanwhile, Northern Superior continues to advance its exploration and consolidation strategy of the Chibougamau Gold Camp in Québec, where the Company owns four advanced projects well-suited to be integrated into a single mining operation.”
