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Doré Copper secures option to acquire Joe Mann gold mine in Quebec for C$9.3M

Doré Copper Mining Corp. said Jan. 2 that it signed an option agreement with owners Ressources Jessie Inc. and Legault Metals Inc. to acquire the Joe Mann gold mine in Quebec.

The mine, which was closed in 2007 during a period of low gold prices, is about 50 kilometers from the company's Copper Rand mill. It produced 1.17 million ounces of gold at 8.26 g/t gold, 607,000 ounces of silver at 5 g/t silver, and 28.7 million pounds of copper at 0.25% copper.

Under the deal, the company has to pay a total of C$5.3 million in cash and C$4.0 million in shares to the vendors over three years.

Doré also has to spend C$2.5 million in qualifying exploration expenditures before the third anniversary of the effective date of the option agreement.

Doré will grant a 2% net smelter return royalty to the vendors. The company will have the option to buy back 1% of the royalty for C$2.0 million, and a further 0.5% for C$4.0 million.