Osisko acquires interest in Bonterra’s Canadian properties

Osisko Mining, a Canadian mineral exploration company, has achieved a agreement with Bonterra Resources to acquire a 70% exploration earn-in and joint venture (JV) interest in its Urban Barry properties and the adjacent Duke and Lac Barry properties in Canada.

The Duke property is located in the Eeyou Istchee James Bay region of Quebec and is 70% owned by Bonterra and 30% owned by Osisko. Bonterra also owns 85% of the Lac Barry property, with the remaining 15% owned by Gold Royalties.

All of these properties consist of a total of 496 claims covering an area of ​​more than 22,508 hectares (ha).

As part of the agreement, Osisko will pay an upfront consideration of US$1 million (CAD$1.35 million) in cash within one business day and US$4 million in cash upon entering into a definitive agreement.

The exploration earn-in will fund $30 million in working expenses over three years to acquire an undivided 70% interest, equivalent to $10 million in annual working expenses.

Upon completion of the exploration earn-in, Osisko and Bonterra will enter into a joint venture. During the exploration earn-in and following the formation of the JV, Osisko will operate the properties.

It is also planned to form a management committee to guide the operator during exploration programs on the Urban Barry properties.

Urban Barry’s properties are located 700 km from Montreal and comprise 1,372 mapped claims covering approximately 741 km². Osisko holds a 50% interest in the property.

The Barry deposit within the property hosts a shear-hosted gold deposit with multiple parallel, sub-vertical shear zones. Mineralization includes disseminated sulphides within the shear zones and veins with locally visible gold.

The Gladiator deposit hosts veins of chalcopyrite, chlorite, galena, sericite, sphalerite, tourmaline with pyrite and visible gold.

The Duke property, located adjacent to the Gladiator deposit, is expected to comprise 81 mineral claims totaling 3,590 hectares. Its mineralization is associated with multiple subparallel, shear-hosted quartz-carbonate-chlorite veins and stockworks with minor pyrite and gold trends.