Timmins junior miner Melkior Resources has brought aboard Kirkland Lake Gold to work up a prospective gold property.
Melkior announced the signing of a "strategic partnership" with the mid-tier gold miner beginning with a non-binding term sheet that allows Kirkland Lake Gold to take an option on Melkior's Carscallen Property, 25 kilometres west of Timmins.
Over a five and ten-year period, Kirkland Lake Gold can earn a 50 per cent and a 75 per cent ownership stake in the property contingent on spending a certain amount in exploration.
The west end of the Timmins gold camp is familiar ground for Kirkland Lake Gold CEO Tony Makuch. He ran Lake Shore Gold from 2008 to 2016, an explorer and mine developer that revitalized a dormant gold camp. Tahoe Resources later acquired Lake Shore in 2016.
The Carscallen Property, a 47-square-kilometre holding with significant gold-bearing drill results, shares a boundary with Pan American Silver.
According to the agreement, Melkior will raise $1,000,000 to Kirkland Lake Gold of up to 1,250,000 units at a price of $0.80 per unit.
Each unit will be comprised of one common share of Melkior and one common share purchase warrant entitling Kirkland to acquire a Melkior share for $1.20 per share for a period of two years from the closing of the financing.
"We are extremely proud to announce this landmark equity investment and potential joint-venture agreement with one of the world's most respected gold mining companies," said Melkior CEO Jonathon Deluce in a statement.
"We believe this may provide our shareholders with the upside of discovery with limited share dilution to advance the property."
Kirkland Lake Gold CEO Tony Makuch was president and CEO of Lake Shore Gold, from 2008 until its acquisition by Tahoe Resources in 2016.
The operation was later acquired again by Pan American Silver, which shares a nine-kilometre border with our Carscallen gold project.
"Mr. Makuch and his technical team have a comprehensive understanding of the geological setting within the Timmins gold camp, which we felt as a board made this the perfect fit. We will continue to focus on advancing our other assets while providing updates as they come available at the Carscallen Project. We want to thank our long-standing shareholders as we look forward to welcoming Kirkland Lake Gold as a strategic partner upon completion of the financing.”