Midland Enters Strategic Alliance With SOQUEM in the Grenville and Regains 100% Interest in the Casault and Jouvex Projects
MONTREAL, Feb. 27, 2020 (GLOBE NEWSWIRE) -- Midland Exploration Inc. (“Midland”) (TSX-V: MD) is pleased to announce a new strategic alliance with SOQUEM in the Grenville Province
and an agreement to regain 100% interest in the Casault and Jouvex gold projects, previously in joint venture with SOQUEM. In exchange, Midland relinquishes 50% interest in its seven (7) properties
grouped under the Gatineau Zinc project located in the Grenville Province, south of the town of Maniwaki, Quebec.
Strategic alliance in the Grenville
SOQUEM and Midland agree to enter into a joint venture agreement and a strategic alliance in the Grenville. SOQUEM and Midland will jointly implement a targeting approach to identify and assess the mineral resource potential and to acquire mining rights covering the best targets for base metals.
Projects acquired under the target generation program will be declared “Designated Projects” once the mining rights have been acquired. Each Designated Project will be the object of a distinct joint venture agreement, the terms of which will be similar to the joint venture agreements to be signed relating to the active properties.
A management committee composed of four members, two nominated by each party, will manage activities conducted under the target generation program for the duration of the agreement. The parties are not subject to budgetary obligations under the target generation program. The budget will be defined by the management committee. The target generation program will last for a period of 2 years, unless it is extended by mutual written consent of both parties.
SOQUEM will be project manager under the target generation program and for all joint ventures formed on Designated Projects; Midland may assign up to 30% of personnel.
Midland regains 100% interest in the Casault and Jouvex projects (the “Properties”)
Under the agreement, SOQUEM transfers to Midland its 50% interest in the Properties in exchange for:
- A 1% NSR royalty; Midland may, at any time, buy back the royalty, in all or in part, by making a cash payment of $1,000,000 per tranche of 0.5% NSR; and
- 50% undivided interest in a joint venture relating to seven (7) existing mining properties located in the La Vallée-de-la-Gatineau regional county municipality (“MRC”), wholly owned by Midland (the “Existing Properties”).
The Casault project is located approximately 140 kilometres north of the town of La Sarre in Abitibi, Quebec. The property consists of 316 claims covering a surface area of approximately 174 square kilometres, about 40 kilometres east of the Detour Lake gold deposit. Gold is associated with quartz veining in altered mafic volcanic rocks with disseminated pyrite mineralization. Drill hole CAS-12-07 intersected 10.4 g/t Au over 1.45 m from 176.60 to 178.05 m (see press release dated April 26 2012) and drill hole CAS-15-53 intersected 6.9 g/t Au over 1.1 m in the same area between 395.00 and 396.10 m (see press release dated October 22 2015). A gold-bearing porphyry intrusion (QFP) was also recognized on the property in 2017 (Vortex zone). Drill hole CAS-17-96 yielded a grade of 1.38 g/t Au over 26.5 m in this zone between 155.80 and 182.00 m, including 7.9 g/t Au over 2.2 m from 179.80 to 182.00 m (see press release dated January 18 2018). The property is well positioned less than 10 km of the Tabasco / Fenelon and Area 51 gold discoveries of Wallbridge. A new drilling program is currently in preparation.