Under the terms of the agreement signed today, which remains subject to regulatory approval, Beaufield will have the option to earn an interest of up to 50% in the project by incurring exploration expenditures aggregating $1,250,000 over five years, with a minimum $250,000 of exploration expenditures in the first year. Beaufield will earn 10% interest for each $250,000 of exploration expenses.
Melkior will remain as the operator on the project until the first $250,000 of exploration expenditures is spent. Melkior or Beaufield will thereafter be the operator until the end of the option period. Drilling on the project planned to start later in November 2013.
Melkior is pleased to advance exploration on the project, which is located in the Val-D’Or Rouyn Noranda mining camp and benefits from excellent infrastructure.
Jens E. Hansen is President, CEO and director of Melkior and Beaufield. As such, Mr. Hansen is a "non-arm’s length party" as defined in the Policies of the TSX Venture Exchange. The joint venture agreement was considered and approved by both boards of directors other than the common director who abstained from such approval
