PNX Metals Ltd. said Jan. 31 that it signed an agreement with a Kirkland Lake Gold Ltd. unit to acquire four mineral leases at Fountain Head and the remaining 49% interest at the Moline project to expand its Hayes Creek zinc-gold-silver project in Australia's Northern Territory.
In return for the acquisition of Fountain Head and the balance of the Moline project, PNX agreed to carve out three exploration areas within the Burnside project area that are also part of a farm-in agreement and 51% owned by the company.
Kirkland Lake Gold will also receive a 2% net smelter returns royalty over any precious metals derived from Fountain Head and Moline, the latter of which consists of three mineral leases and one exploration license.
The acquisition of the licenses secures the proposed location for the project's process plant, the company said.
Meanwhile, Kirkland Lake Gold's 30% clawback option at Hayes Creek lapsed, affirming PNX's full ownership over the project.
An updated mineral resource estimate for Hayes Creek in May 2017 estimated contained metal of 445,000 tonnes of zinc equivalent or 1.1 million ounces of gold equivalent.
