Another read....Lake Shore Gold sells Bazooka and McWatters gold properties in Quebec to RT Minerals
Lake Shore Gold (TSX:LSG) has agreed to sell its Bazooka gold and McWatters properties in Quebec to Vancouver-based RT Minerals (CNSX: RTM) in an a stock deal.
Under the terms of the sale, RTM will issue an aggregate of 10 million shares to Lake Shore. In addition, RT will transfer its interest in the Golden property near Timmins, Ontario and 50% of its stake in the Meunier joint venture property to Lake Shore for additional consideration. Meunier is located close to Lake Shore's Timmins Gold property.
RT said the acquisition of Bazooka is beneficial for the company, as it provides RT with a 100% vested interest in an advanced stage property that hosts known gold zones in the Noranda-Val D'Or mining region.
The property consists of 15 mining claims in Beauchastel Township, 7 km southwest of Rouyn Noranda, Quebec and is adjacent to the west boundary of properties owned by Yorbeau Resources. Bazooka is situated about 45 km southwest of Agnico Eagles Laronde mine and about 40 km west of Osisko's Malartic project.
Geologically, the property overlies 1.8 km of the Cadillac-Larder Lake Deformation Zone (CLDZ), a major structural zone near the south margin of the Abitibi Greenstone Belt.
The most recent work at the property includes drilling by Lake Shore in 2003 and 2004 of 23 holes and 7676m. Significant intersections from the time include 11.7g/t gold over 2.0 m, 10.8g/t gold over 2.3 m, 94.1 g/t gold over 1.3 m, and 316.2g/t gold over 1.0 m.
"The drill results indicate excellent potential to extend the known deposit along strike and to depth as well as to define new deposits surrounding other northeast trending flexures west of the shaft," RT said in a statement.
McWatters is a 12 claim property (404 Ha) located 8 km southeast of the town of Rouyn-Noranda. The property is just north of the Cadillac Larder Lake Fault Zone and is adjacent to the east boundary of the Yourbeau Astoria Property.
In connection with the transfer of the Meunier JV property, RT and Lake Shore said they will form a 50/50 joint venture and will share RT's obligations under the Meunier JV with Adventure Gold (TSX.V: AGE).
The acquisitions remain subject to RT shareholder approvals, as well as those of the underlying vendors of th eproperties.
Lake Shore was up 7.5% on Thursday, trading at $3.87 as of 1:09pm EST.