Alexandria Minerals Corp. (
TSX: V.AZX,
OTCQB: ALXDF,
Forum) announced today that it has entered into a binding Option and Joint Venture agreement with Probe Metals Inc. The agreement pertains to the eastern portion of Alexandria’s 35 kilometer-long Cadillac Break Property Package, in the Val d’Or region of Quebec.
Under the terms of the deal, Probe can earn up to a 70% interest of the eastern, 1/3 portion of Cadillac Break by expending up to $7.0 million in exploration and completing a pre-feasibility study, over a period of six years. In turn, this means that Alexandria can focus its own exploration initiatives on the western portions of the land package.
The agreement is comprised of two options in order for Probe to earn its full interest. Under the first option, Probe will issue 300,000 common shares to Alexandria upon signing the agreement. Probe may then earn a 60% interest in the Property by expending $5 million on exploration over a period of four years. At that point a joint venture will be formed with Probe holding a 60% interest and Alexandria holding a 40% interest.
Under the second option, Probe can earn an additional 10% through issuing Alexandria 200,000 common shares and then within two years completing a pre-feasibility study on a mineral resource of at least 1 million ounces of gold. Further information can be found here.
Alexandria was recently in the news earlier this month when it announced
up to $5.08 million of financing through Sprott Private Wealth LP.
The Company has 346 million shares outstanding and a market cap of $15.6 million.
FULL DISCLOSURE: Alexandria Minerals Corp. is a paid client of Stockhouse Publishing.