Matamec Close its Agreement with Glencoe....yes...yes Matamec Closes its Agreement With Glencore and Goldcorp for the Hoyle and Matheson Townships Properties
Matamec receives CAD$500,000 and NSR on the new Hoyle-Matheson Royalties Property
MONTREAL, QUEBEC--(Marketwired - March 2, 2016) - Matamec Explorations Inc. ("Matamec" or the "Company") (TSX VENTURE:MAT)(OTCQX:MHREF) announced today the closing of the previously announced (in a press release dated December 21, 2015) transaction (the "Transaction") between the Company, International Explorers and Prospectors Inc. ("IEP"), Glencore Canada Corp. ("Glencore") and Goldcorp Canada Ltd. ("Goldcorp") with respect to the sale by the Company and IEP on certain properties located in Hoyle and Matheson Townships in Timmins.
Sale of Properties to Glencore and Goldcorp
Prior to the closing of the Transaction, the Company and IEP owned the properties listed below (the "Properties") pursuant to their involvement in a contractual joint venture name the "Matheson-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.
As part of the Transaction, the Company and IEP have sold (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 retain all mining rights in relation to the Northern Property.
As consideration:
- Glencore paid: (i) CAD$500,000 to each of the Company and IEP; and (ii) granted 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: (i) granted a 1% NSR royalty to each of the Company, Glencore 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) granted 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, east 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 closing of this PREAA is an important milestone in gold exploration for Matamec, which has had a stake in the prolific gold mining camp of Timmins, Ontario since 2006", said Andre Gauthier, President and CEO of Matamec. "Plus, the new Hoyle-Matheson Royalties and MJV properties (see attached 2 maps) covered by this agreement are located in the Hoyle and Matheson Townships, east and south of the Hoyle Pond gold mine."
About the MJV Property
With the closing of the PREAA, the MJV property will consist of 60 mining titles. This property is located within a ten kilometer distance along strike of the Bell Creek and Owl Creek deposits and the Hoyle Pond mine, within the same stratigraphic assemblages including the Tisdale assemblage which hosts most, if not all, of the gold deposits within the Porcupine mining camp. More specifically, the property is located approximately 1.7 kilometres east of the Hoyle Pond mine workings. The stratigraphy hosting the Hoyle Pond mine strikes eastward into Matheson Township where it also hosts the Mill Creek/Colbert Zones. Outside of the Hoyle Pond mine stratigraphy, there are at least two additional gold-bearing corridors that have been outlined and are present on the MJV property.
(The technical data shown in this press release regarding the MJV, comes from the "Exploration Report on the Matheson Property" prepared by J.A. Marcotte and E. Gigure on May 31, 2010 for the option among Goldcorp Canada Ltd. And Goldcorp Inc. and Matamec and EAC (IEP) terminated in March 31st, 2011.)