November 20, 2020 – TheNewswire – Timmins, Ontario – Melkior Resources Inc. (“Melkior” or the “Company”) (TSXV:MKR) (OTC:MKRIF) is pleased to announce the closing of an option and joint venture agreement with Barrick Gold Inc (“Barrick”), a wholly-owned subsidiary of Barrick Gold Corporation. Under the terms of an option agreement entered into between the Company and Barrick (the “Option Agreement”), Melkior has granted Barrick the right to earn-in up to a 75% interest in the White Lake Project located 20 kilometers east of Barrick’s Hemlo Mine (the “Property”).
Under the terms of the option agreement, Barrick has an option to earn a 75% interest in the Property in consideration for completing $4 million in exploration expenditures over a period of five years. Barrick has a minimum commitment of $0.5 million during the first two years of the Option Period (the “Minimum Commitment”). Barrick will act as the Operator of the Property during the Option Period. All expenditures beyond the Minimum Commitment are optional. Should Barrick fail to incur the Expenditures during the Option Period, Barrick’s option to acquire the 75% interest shall expire.
Upon Barrick completing the Expenditures and earning its 75% interest, the parties shall enter into a joint venture agreement to carry on operations with respect to the Property (the “Joint Venture”). Funds required for further development will be contributed by the joint venture parties based on their proportional joint venture interests (75%/25%). Dilution of a shareholder’s interest below 10% will result in the conversion of the interest to a Net Smelter Return royalty of either 1% or 2% on certain claims dependant upon pre-existing royalties.
Jonathon Deluce, Chief Executive Officer of Melkior Resources, commented:
“We are proud to announce this option agreement with one of the world’s largest gold mining companies. Barrick operates the Hemlo mine 20 kilometers west of the White Lake Project, which has been in production since 1989. With Barrick’s plans to extend the life of the Hemlo gold mine by transitioning it to a modernized Tier Two asset, it is clear there is still a lot to come from this mining camp that has produced over 21 million ounces of gold.
With Barrick as our partner to move the White Lake Project forward, even a small discovery has the potential to be economic because of the Property’s proximity in relation to their processing facilities.
We will continue to focus on advancing our other assets while providing updates as they come available at the White Lake Project.
This is another very exciting milestone for our shareholders as we add another world-class partner to our value proposition. We continue to be cautious of our equity structure by putting our assets in a position of discovery with full alignment with our shareholders.”
ON BEHALF OF THE BOARD
Jonathon Deluce, CEO
For more information, please contact:
Melkior Resources Inc.