Stelmine Exploration Acquires 100% of Courcy Project
TSX VENTURE: STH
QUEBEC, QUEBEC--(Marketwired - Sept. 26, 2017) - Stelmine Canada Ltd.(« Stelmine ») (TSX VENTURE:STH) Exploration work resulting from systematic prospecting, mapping and overburden stripping on the Courcy property prompted Stelmine management to buy back immediately all Exploration J.F.'s and its partners' holding in the project.
Since mid-June 2017, under the supervision of its Exploration Committee-geologists Michel Boily and Normand Goulet, who are specialized in geochemistry, metallogeny and structural geology-the Company has been carrying out an intensive exploration campaign on the Courcy property, located in the eastern portion of the Opinaca sub-province, which gave rise to the Éléonore Mine. This work provides a new geological interpretation of the sector, based on a metallogenic model associating gold mineralization with silicate iron formations (BIF) in a basin dominated by deformed, metamorphosed metasediments associated with volcanic assemblages (August 22, 2017 press release).
In exchange for Stelmine's buyback of Exploration J.F's and its partners' 10% interest in the Courcy property and cancellation of the right to a 1.25% royalty and half of a discovery bonus, Stelmine will pay Exploration J.F and its partners $20,000 and issue 350,000 Company shares. Stelmine will grant a 0.25% royalty and a discovery bonus of $0.50 per ounce of gold for reserves totaling 5,000,000 ounces or more.
The transaction is subject to a regulatory 4-month-plus-1-day hold period (restrictions on resale). After that, Exploration J.F and its partners will not be authorized to sell, on a given day, more than 10% of all Stelmine shares traded on stock markets that day without informing Stelmine 5 days before the transaction date and obtaining its prior consent.
This agreement and the proposed issuing of shares to Exploration J.F and its partners are conditional on TSX Venture Exchange approval. In the context of the proposed share issue, the Company is availing itself of the prospectus exemption provided for in section 2.16 of the instrument 45-106 Prospectus Exemptions.
Stelmine is a junior mining exploration company and its activities are located in the Province of Québec. Stelmine holds 754 claims spanning 383 km2 on the eastern part of the Opinaca metasedimentary basin, which contains zones with a high potential for gold deposit discovery in geological contexts similar to the one leading to discovery of the Éléonore Mine. Its capital stock consists of 21,926,452 issued and outstanding shares for a current market capitalization of $6.6 million.