MacDonald Mines Exploration Ltd. said Sept. 9 that it is expanding its Scadding-Powerline-Jovan property by purchasing 151 claims in the Wanapitei Lake area northeast of Sudbury, Ontario, from owner Terry Loney for C$80,000 and 750,000 shares, which will be paid in three tranches.
MacDonald will pay C$20,000 and 200,000 shares upon signing the agreement, C$30,000 and 300,000 shares on or before the first anniversary of the agreement, and C$30,000 and 250,000 shares on or before the second anniversary of the agreement.
MacDonald will also grant the seller a 2% net smelter royalty, of which MacDonald has the right to purchase each 1% at any time for C$1.0 million.
The company said the claims cover prospective extensions of the gold-rich iron-oxide-copper-gold system identified at the Scadding gold mine.
In April, MacDonald said it signed definitive agreements with Northern Sphere Mining Corp. and Currie Rose Resources Inc. to buy Scadding.
