Canada-listed Red Lake Gold subsidiary Alma Gold has executed an option agreement to acquire a 100% interest in the Chambers Settlement gold project, in New Brunswick, from Avalon Gold Resources.
Alma intends to do follow-up exploration work on top of recent work executed by Avalon.
The terms of the acquisition involve a series of cash payments over a four-year earn-in period, and the granting of a 2% royalty, which may be re-purchased by Alma.
Red Lake has appointed Mercator Geological Services to prepare exploration plans and other technical materials expected to be used on the project.
Meanwhile, Red Lake intends to spin-out shares of Alma to its shareholders and, thereafter, Alma will pursue its own public listing.
Red Lake also incorporated a wholly-owned subsidiary, Fenelon Gold, for the purposes of advancing the Fenelon North gold project, which shares a 50 km common property boundary with Wallbridge Mining Company.
Through the Fenelon project, Red Lake controls a significant amount of mineral tenure, exceeding 60 000 acres, which includes substantial holdings within the Jeremie Pluton structure that has seen increased exploration activity from the industry.
Lastly, the company announced that it had been granted regulatory relief by Québec's Minister of Energy and Natural Resources related to the Fenelon project.
The project received an extended good-standing date through to early 2023.