Matamec Explorations Inc. announced today the execution of a Property Rights Exchange Arrangements Agreement between the Company, International Explorers and Prospectors Inc., Glencore Canada Corp. and Goldcorp Canada Ltd. with respect to the sale by the Company and IEP of certain properties located in Hoyle and Matheson Townships in Timmins.
The PREAA sets out the arrangements among the parties related to, among other things, the consideration to be received by the Company for the sale of its interest in the properties, being CAD$500,000 and certain net smelter royalties, all as detailed below.
Sale of Properties to Glencore and Goldcorp
The Company and IEP own the properties listed below (the "Properties") pursuant to their involvement in a contractual joint venture named the "Matamec-IEP Matheson Joint Venture" (the "MJV").
- The "Colbert/Anglo Property", comprising freehold mining and surface rights located in Timmins, Ontario, east of the Hoyle Pond Gold Mine; and
- The "Northern Property", comprising a portion of leasehold surface rights located in Timmins, Ontario, east of the Hoyle Pond Gold Mine.
Upon closing of the transactions contemplated by the PREAA, the Company and IEP will sell (a) to Glencore, the Northern Property as well as the surface rights to the Colbert/Anglo Property; and (b) to Goldcorp the mining rights in relation to the Colbert/Anglo Property. The Company and IEP will retain all mining rights in relation to the Northern Property.
- Glencore will pay: (i) CAD$500,000 to each of the Company and IEP; and (ii) grant a 1% NSR royalty to each of the Company and IEP in respect of Glencore's "Bint Property" located in Timmins, Ontario, east of the Hoyle Pond Gold Mine; and
- Goldcorp will: (i) grant a 1% NSR royalty to each of the Company and IEP in respect of the Colbert/Anglo Property mining rights (with a right to buy back 0.375% of each such NSR royalty for an aggregate amount of CAD$1,000,000); and (ii) grant a 1% NSR royalty to each of the Company, Glencore and IEP in respect of each of certain fee simple mining rights and leased mining rights held by Goldcorp and located in Timmins, Ontario, south of the Hoyle Pond Gold Mine. The NSR royalty on the aforementioned leased mining rights shall be payable after the initial 500,000 ounces gold equivalent threshold is met.
"The entering into of the PREAA is an important milestone on gold exploration for Matamec in the prolific gold mining camp of Timmins, Ontario", said Andre Gauthier, President and CEO of Matamec. "Plus, the properties covered by this agreement are located on the Hoyle and Matheson Townships, east and south of the Hoyle Pond gold mine."