Midland signs deal with Barrick for Lewis gold property

Executive Summary

• Midland Exploration Inc. has signed a definitive option agreement with a wholly owned indirect subsidiary of Barrick Mining Corp. to acquire up to a 75% interest in the Lewis gold property in Quebec.
• Barrick can earn an initial 51% interest by paying $250,000 in cash and completing $3 million in exploration work by December 31, 2028.
• Barrick can further increase its stake to 60% and then 75% through additional cash payments and exploration spending milestones, totaling $750,000 in cash and $12 million in exploration work by December 31, 2032.

Key Details

• Transaction Structure: Definitive option agreement for the Lewis gold property, currently 100% owned by Midland.
• Counterparty: Barrick Mining Corp. (via a wholly owned indirect subsidiary).
• Total Earn-In Potential: Barrick can acquire up to a 75% interest.
• Total Consideration:
  • Cash: $750,000 total.
  • Exploration Work: $12,000,000 total.
• Milestone 1 (51% Interest):
  • Deadline: On or prior to Dec. 31, 2028.
  • Cash Payment: $250,000.
  • Exploration Work: At least $3,000,000 (including a guaranteed $200,000).
  • Result: Formation of a Joint Venture (JV).
• Milestone 2 (60% Interest):
  • Deadline: On or prior to Dec. 31, 2030.
  • Cash Payment: $200,000.
  • Exploration Work: At least $1,500,000.
• Milestone 3 (75% Interest):
  • Deadline: On or prior to Dec. 31, 2032.
  • Cash Payment: $300,000.
  • Exploration Work: At least $7,500,000.
• Dilution/NSR Clause: If Barrick fails to exercise funding options, JV interests are subject to proportionate funding and dilution terms. Dilution to or below a 10% JV interest converts the interest to a 2% Net Smelter Return (NSR) royalty, with the right to repurchase 50% of the NSR (reducing it to 1%) for $1.5 million.
• Operator: Barrick will be the operator of the exploration work.
• Property Location: Approximately 60 km southwest of Chapais, Abitibi, Quebec.
• Property Assets: 154 exclusive exploration rights (86 square kilometres).
• Strategic Context:
  • Located ~60 km northwest of Iamgold’s Nelligan deposit (106.4M tonnes inferred @ 0.96 g/t Au; 102.8M tonnes indicated @ 0.85 g/t Au).
  • Located ~10 km west of the former Lac Shortt mine (historically produced 2.7M tonnes @ 4.6 g/t Au).

Notable Quotes

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