Gespeg Copper Resources Inc. signed a deal to buy the Montauban base and precious metals project in Quebec from DNA Canada Inc. in exchange for a convertible loan of about C$2.3 million.
The company said Jan. 17 that it will also secure the rights and obligations under DNA Canada's December 2018 option agreement with Osisko Metals Inc. for base metals exploration at Montauban.
Osisko is required to spend C$2.5 million on exploration within three years to earn an 80% interest in the base metals assets at the property. Osisko can acquire a 20% interest in any precious metals discovery.
Gespeg said the acquisition will allow it to develop and evaluate four past-producing tailings sites at Montauban, and it has already started exploration work.
President and CEO Sylvain Laberge said in a statement, "Having the geological knowledge and technical expertise from the Osisko Metals team, who will be acting as operator for the exploration of base metals on the property, will be an added value, and allow us the opportunity to focus on the precious metals."
DNA will retain a net smelter royalty of 2% on the precious metals produced from Montauban, which can be bought back for C$1 million.