Chalice Gold Mines Ltd. said Sept. 10 that it agreed to acquire the remaining 30% joint venture interest in the Chimo property from Monarques Gold Corp.

The property forms a key part of the company's East Cadillac gold project in Quebec, as it covers a 16-kilometer strike along the Cadillac fault, where recent drilling confirmed extensive gold mineralization.

In March, the company met its minimum exploration expenditure commitment of C$3.1 million, paid C$200,000 and granted a 1% net smelter return royalty to earn a 70% interest in the property, as part of the original agreement.

Chalice agreed to acquire the remaining interest in the property for another 3 million shares and grant of 0.5% to 1.5% of an additional NSR to Monarques.

The property now has combined NSR royalties of 2.5% on all claims, while Chalice can repurchase 0.5% of the NSR for C$1.0 million.

Chalice is conducting an extensive field program over the project, which is expected to be completed in October. The company expects to have prioritized drill targets ready for the next phase of drilling, expected to start in the upcoming winter field season.