Probe Metals (TSXV: PRB) is looking to expand its landholdings. The company announced this morning that it has entered into a binding option agreement with Midland Exploration (TSXV: MD) to acquire up to a 65% interest in the La Peltrie gold property, which is contiguous with Probe’s current Detour Quebec gold project.
The property being acquired from Midland consists of a total of 435 claims, which cover a total of 240 square kilometres. When consolidated with Probe’s current land package in the area, the entire area amounts of 1,169 claims that represent 636 square kilometres, the second largest consolidated land package along the Lower Detour trend. The company currently has claims for over 70 kilometres of this trend.
The new property is roughly 25 km southeast of Kirkland Lake Gold’s (TSX: KL) Lower Detour Zone 58N, which currently has a resource estimate of 534,300 indicated ounces of gold and 136,100 inferred ounces of gold.
Under the terms of the option arrangement, Probe can acquire a 50% interest in the La Peltrie property by spending $3.5 million on the property over a four year term, including $500,000 within the first 12 months. The company is also required to make cash payments to Midland over a four year term totaling $400,000. The initial payment will be satisfied through the issuance of 37,879 common shares of Probe.
The remaining 15% of the project can be acquired by Probe through expenditures or cash payments of $5.0 million in the two years following the exercise of the first option.
Probe is said to be the project operator, and as per Midland, will begin exploration on the project shortly to test targets in the area south of the Lower Detour Fault. Probe made no mention of this in their news release however.
Probe Metals last traded at $1.43 on the TSX Venture.
Information for this briefing was found via Sedar and Probe Metals. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
