JOHANNESBURG (miningweekly.com) – TSX-V-listed Darnley Bay Resources has entered into an agreement with TSX-listed Eastmain Resources, whereby Darnley Bay can acquire a 50% undivided interest in Eastmain’s Lac Lessard project, in Quebec.
"We are excited about the potential of Lac Lessard's kilometric-scale ultramafic intrusive with highly conductive versatile time-domain electromagnetic (VTEM) anomalies within 200 m of surface. The elevated concentrations of nickel, copper, platinum-group metals (PGMs) and gold confirmed during Eastmain's 2014 summer survey was a decisive factor," Darnely Bay CEO Jamie Levy said.
To earn the 50% interest in the project Darnley Bay had to incur exploration expenditures on the property totalling $2.5-million over a four-year period, including a firm commitment of $500 000 during the first year.
The company also had to pay Eastmain $50 000 in cash on or before December 31 and an additional $50 000 on each subsequent anniversary of the agreement for the duration of the option period, for a total cash payment of $200 000.
Further, Darnley Bay would issue Eastmain with eight-million common shares in the company within 15 days of receipt of regulatory approval.
Eastmain would be the project manager for all work programmes pertaining to the property.
“Lac Lessard has advanced from initial airborne surveys to ground confirmation of a prospective nickel/copper/PGM target. We are very pleased to have Darnley Bay fund the next stages of exploration,” Eastmain president and CEO Don Robinson stated.