Probe MetalsInc. entered into an arm's length agreement with Orion ResourcesPartners LP's wholly owned subsidiary Vaaldiam Mining Inc. to buy back a 20% net proceeds ofproduction royalty covering certain mineral claims at Probe's gold project inQuebec.
According to a July 12 statement, Probe will issue 500,000common shares in consideration for the royalty.
The royalty also covers the current mineral resourcescontained within the project's boundaries.
Under the August 1992 agreement between New Pascalis MinesLtd., now Vaaldiam, and Cambior Inc., Vaaldiam was entitled to a 20% netproceeds of production royalty in the mineral properties.
IAMGOLD-Quebec Management Inc., formerly Cambior Inc.,entered into a deal with Probe subsidiary Adventure Gold Inc., in March 2008, under whichAdventure Gold acquired the properties and assumed all of the obligations ofIAMGOLD under the royalty agreement.