- Probe Metals (PRB) has signed an option agreement with Midland Exploration to acquire up to a 65 per cent stake in the La Peltrie gold property in Quebec
- Under the agreement, the company may acquire an initial 50 per cent interest by paying a total of C$400,000 in cash to Midland Exploration and incurring $3.5 million in expenses
- The total interest may then be increased to 65 per cent via a cash payment or total expenses of $5 million
- Contiguous with the company’s existing Detour gold project, La Peltria consists of 435 claims over a total of 240 square kilometres
- Probe Metals (PRB) is up 2.1 per cent and is trading at $1.46 per share
Probe Metals (PRB) has signed an option agreement with Midland Exploration to acquire up to a 65 per cent stake in the La Peltrie gold property in Quebec.
Located in the Abitibi region, the property consists of 435 claims over a total of 240 square kilometres. It covers more than 25 kilometres of the northwest-southeast trending subsidiary faults in the southern portion of the Lower Detour Fault.
Induced polarisation surveys undertaken in 2016 and 2017 discovered a number of targets connected with these subsidiary faults, and exploration drilling carried out in 2017 identified geological structures with a substantial potential for the discovery of gold-rich deposits.
Under the terms of the option agreement, Probe Metals may acquire an initial 50 per cent interest in the property via a total cash payment of C$400,000 and by incurring an aggregate of $3.5 million in project-related expenses.
Pursuant to the first required tranche of the cash payment, Probe Metals will issue 37,879 common shares to Midland for a total value of $50,000 based on a five-day volume weighted average price of $1.32 per share.
Upon exercise of this initial option, Probe Metals may then increase its interest in the La Peltrie property to 65 per cent by incurring additional expenses, or by making a cash payment, of $5 million within a period of two years.
David Palmer, President and CEO of Probe Metals, said he is pleased to be working with Midland Exploration on the Detour Trend.
“Midland has put together a very strategic and prospective portfolio of claims, and these blocks tie in very well with our current exploration model and our own claims in the area.
“Historically there has been a lack of exploration in this tremendously prospective area and we see potential for new high-grade discoveries along the entire length of the property package,” he added.
The option to acquire an interest in the La Peltrie property is consistent with Probe Metals’ business model to acquire and develop prospective project in proven gold districts within Quebec.
Upon completion of the acquisition, the company will have the opportunity to explore the prospective Lower Detour Gold Trend for a length of 70 kilometres and a total area of 636 square kilometres.
Probe Metals (PRB) is up 2.1 per cent and is trading at $1.46 per share at 10:41am EDT.