Metals Creek Resources Corp. [MEK-TSXV] has signed an option deal with Goldcorp Canada Ltd., a Canadian unit of Newmont Goldcorp Corp., [NGT-TSX, NEM-NYSE] which gives Metals Creek the option to earn a 100% interest in Goldcorp Canada\u2019s Dona Lake Mine property.<\/p>\n
Metals Creek shares advanced on the news, rising 11.11% or $0.005 to $0.05 on active volume of 1.2 million. The shares trade in a 52-week range of $0.03 and 10.5 cents.<\/p>\n
The property consists of 32 patented and leased mining claims, covering 430 hectares, including the past-producing Dona Lake mine. It is located in the Pickle Lake mining district, about nine kilometres southeast of Pickle Lake, northwestern Ontario.<\/p>\n
Dona Lake was an underground operation, which produced 246,500 ounces of gold at a grade of 7.44 grams per tonne from 1989 to 1994. When the mine closed in 1994, gold was trading at around US$383.23 an ounce. On Wednesday, gold was trading at US$1,338 an ounce.<\/p>\n
Dona Lake is just one of several historic mines which are located on the Pickle Lake Greenstone Belt.<\/p>\n
The option agreement announced on Wednesday allows Metals Creek to earn 100% of Goldcorp\u2019s interest in the property by issuing 7.0 million shares to Goldcorp. Metals Creek must also fund $4 million in exploration costs over 36 months.<\/p>\n
Metals Creek has agreed to meet that obligation by issuing 500,000 shares within five days of a definitive agreement and TSX approval. It must also spend $500,000 prior to the first anniversary of the start date.<\/p>\n
The junior must also issue 1.5 million shares on or before the first anniversary of the start date and spend an additional $1 million prior to the second anniversary of the start date. Metals Creek has committed to complete 2,500 metres of drilling within that time frame.<\/p>\n
Prior to the second anniversary, Metals Creek must issue two million shares. It is also required to spend an additional $2.5 million on exploration, including 10,000 metres of drilling prior to the third anniversary.<\/p>\n
Metals Creek must issue another 3.0 million shares before the third anniversary of the start date.<\/p>\n
After vesting, Newmont Goldcorp will have a one-time option to elect to earn back 51% of the property by spending $4 million on exploration over the following 24 months.<\/p>\n
Metals Creek also has a 50\/50 joint venture deal with Goldcorp Canada and Newmont Goldcorp on the Ogden Gold Property, near Timmins, Ontario. It covers over eight kilometres of strike length on the fabled Porcupine-Destor Break. Gold production to the east of the Metals Creek property has exceeded 22 million ounces from a number of mines, including Newmont Goldcorp.\u2019s Dome Mine, which has produced in excess of 17 million ounces.<\/p>\n","protected":false},"excerpt":{"rendered":"
Metals Creek Resources Corp. [MEK-TSXV] has signed an option deal with Goldcorp Canada Ltd., a…<\/p>\n","protected":false},"author":41,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"footnotes":""},"categories":[622],"tags":[48],"_links":{"self":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1120880"}],"collection":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/users\/41"}],"replies":[{"embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1120880"}],"version-history":[{"count":1,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1120880\/revisions"}],"predecessor-version":[{"id":1120881,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1120880\/revisions\/1120881"}],"wp:attachment":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1120880"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1120880"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1120880"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}