Sudbury, Ont.—Northern Superior Resources, Inc. has entered into an option agreement to acquire 70 per cent of a Murgor Resources, Inc. gold property in northern Quebec.
The agreement gives Northern Superior the opportunity to acquire the majority stake in Murgor’s Waconichi gold property north of Chibougamau, Que., approximately 700-kilometres north of Montreal.
According to the company, the 17,226-hectare property is comprised of 316 mineral claims and adjoins the northernmost boundary of its Croteau Est gold property.
The northern area of the Waconichi gold property is home to an important east-west shear zone, Northern Superior CEO Thomas Morris said in a statement, and is a key target for exploration and mining, with six million ounces of gold and three billion pounds of copper extracted.
Northern Superior can earn the 70 per cent interest in the Waconichi gold project by meeting a number of obligations, including spending an aggregate of $1.25-million on exploration on the property over three years ($300,000 in year one; $350,000 in year two; and $600,000 in year three), paying Murgor $140,000 in cash and issuing Murgor 1,000,000 common shares.
Both companies have agreed that any further claims staked within 1.5-kilometres of the property—outside claims which already form part of the Croteau Est property—will become part of the option agreement.
The deal is conditional upon TSX Venture Exchange approval.