Troilus Gold to bring historic Quebec mine back into production
Emgold Mining (TSXV: EMR) just signed an agreement to sell its 100%-owned Troilus North property to Troilus Gold (TSE: TLG) for 3,750,000 Troilus Gold common shares and C$250,000 in cash.
The sale is expected to be finalized the first week of December and upon its completion, Emgold will keep approximately 7.1% of Troilus Gold’s issued and outstanding share capital.
“Emgold is very excited to have been able to successfully monetize its Troilus North asset in such a short time span and obtain a significant share position in Troilus Gold. We believe combining the Troilus North and Troilus Gold Properties is the best way to unlock the value of the combined properties and create what could be one of Quebec's most significant and exciting gold development opportunities,” David Watkinson, President and CEO of Emgold, said in a media statement.
Troilus North is an early stage gold-copper exploration property located in the Frotet-Evans greenstone belt in the northwest section of the Val d’Or Mining district in Quebec.
The property consists of 209 contiguous claims totaling 11,309 hectares located adjacent to the Troilus Gold property. According to Emgold, the latter was previously operated by Inmet Mining Corporation as an underground and open pit operation, and from 1997 to 2010 it produced more than 2 million ounces of gold and 70,000 tonnes of copper. Currently, Troilus Gold is completing exploration with the goal of developing mineral resources and reserves to revive the historic mine.
“The combination of the 4,700-hectare Troilus Gold property with the 11,309-hectare Troilus North property will create a roughly 16,000-hectare exploration property and enhance Troilus Gold’s ability to further increase mineral resources and, subject to exploration success, ultimately bring the Troilus Mine back into production,” Watkinson said.