Sulliden MiningCapital Inc. said May 2 that it has secured a two-year option to acquirethe past-producing Troilusgold mine in Quebec from First QuantumMinerals Ltd.
The Troilus property consists of 81 mineral claims and one surveyedmining lease that collectively cover approximately 4,700 hectares. The acquisitionwill include all infrastructure such as roads, power lines, camp buildings, permittedtailings pond and associated water treatment facilities.
Under the deal, a subsidiary of Sulliden will fully acquire theTroilus mine by spending at least US$1 million on engineering and technical studiesto evaluate the economic viability of the project.
Upon signing, an initial cash payment of C$100,000 will be madeto First Quantum and an additional cash payment of C$100,000 will be made on thefirst anniversary of the agreement, and a final cash payment of C$100,000 on thedate of exercising the option.
Meanwhile, a variable net smelter royalty of 1.5% or 2.5% dependingon the gold price being more or less than US$1,250 per ounce will be granted toFirst Quantum.
Sulliden intends to enter into a subsequent option agreementwith 251 Ontario Ltd., granting the option to acquire 40% of the Troilus mine andall associated properties in a joint venture arrangement.
In addition, Sulliden has engaged Roscoe Postle Associates Inc.to complete an updated mineral resource estimate for the Troilus project based onhistorical drill data. The company will then proceed with engineering and technicalstudies to evaluate the economic viability of the project.