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Mosaic Minerals options out Quebec gold project

Quebec-focused junior Mosaic Minerals (CSE: MOC) announced this week has optioned its non-core Lichen gold project to Castlebar Capital (TSXV: CBAR.P). The transaction is intended to be Castlebar’s “qualifying transaction” for a public listing.

The Lichen project consists of 282 claims covering a total area of 156.22 square kilometres, and is located approximately 100 km west of the Chibougamau mining camp.

The property is underlain by the volcanic rocks of the Obatogamau formation that run parallel to two known gold-bearing volcanic belts, the Bachelor Lake gold area to the west and the Osisko-Windfall gold area to the south. The Nelligan and Monster Lake gold projects held by IAMGOLD are located at the eastern extremity of this volcanic belt.

Under the option agreement, Castlebar can acquire a 50% interest in the project by making aggregate cash payments of C$205,000 and issuing 1.35 million shares to Mosaic, plus incurring at least C$750,000 in qualifying expenditures on the property.

Upon exercise of the option, Castlebar will have 45 days to either establish a 50/50 joint venture with Mosaic on the project, or acquire the remaining 50% interest by making a C$150,000 cash payment and issuing 1.5 million shares to Mosaic. 

Should Castlebar choose to exercise the second option and acquire full ownership, it will be free and clear of all encumbrances except for a 2% net smelter royalty to be retained by Mosaic.

Mosaic’s current exploration focus is on Quebec’s critical minerals. Its main assets are the Amanda lithium project in the James Bay region and the Gaboury nickel project located near the former Loraine mine.

Source: MINING.COM – Read More