Great Bear Resources (GBR.V) has entered into an agreement with Newmont Mining (NEM, NEM.TO) to acquire Newmont’s 33% interest in the Dixie Lake gold property. Dixie Lake is located in the very prospective Red Lake gold mining district in Ontario, where Goldcorp (G.TO, GG), Premier Gold (PG.TO) and Pure Gold Mining (PGM.V) are operating as well.
Great Bear will be required to pay C$80,000 over the next four years (this earn-in time line could be accelerated), and combined with the C$90,000 cash payments to the private vendor of the remaining 67% stake in the property, Great Bear will own 100% of Dixie Lake for a total remaining cash commitment of C$170,000.
But there’s more, as Great Bear also purchased 100% of the West Madsen gold project by paying a total of C$58,000 in cash over the next three years and issuing a 1.5% NSR, of which 0.75% can be repurchased for C$500,000. This property is just a few kilometers away from Pure Gold’s Madsen gold project, making it an excellent ‘nearology play’.
The company has now also completed an 8-hole, 1,045 meter drill program at Dixie Lake and Great Bear expects to receive the assay results in the first half of September. A phase 2 drill program will be designed after analyzing the assay results from the first phase.