Aussie investors buy Yorbeau’s Rouyn gold project for $25M
Quebec-focused explorer Yorbeau Resources (TSX: YRB) is selling its flagship Rouyn gold property to a group of Australian investors for $25 million — a move that it says will help shore up its balance sheet.
Lac Gold Pty Ltd., an Australian investment group focused on precious metals, will make an initial payment of $2 million to Yorbeau and another $3 million at closing, to gain title of the Rouyn project. The remaining $20 million will be paid in three equal instalments afterwards.
The Rouyn property covers a 12-km stretch of the Cadillac-Larder Lake Break, one of the major fault zones in Quebec’s Abitibi region, with a total area of nearly 27 sq. km.
The property is divided into several major blocks, two of which have seen significant past exploration and a small combined NI 43-101-compliant gold resource of over 70,000 oz. Recent exploration by Kinross Gold (TSX: K; NYSE: KGC) highlighted the potential of an additional 1.7 million oz., though this figure requires further exploration to confirm.
“The Rouyn property is an outstanding opportunity,” Matthew Keegan, chairman of Lac Gold, said in a release. “We are focused on Quebec, being ranked as one of the world’s most attractive mining investment jurisdictions and it is apparent that the Yorbeau team has defined a considerable mineral endowment with clear potential to rapidly increase in size.”
Yorbeau will use the proceeds from the Rouyn sale to accelerate exploration on key targets at its other properties, G. Bodnar Jr., president and CFO of Yorbeau, said in a release..
A main focus will be the Scott Lake zinc-copper deposit near Chibougamau. The project comprises three 100%-owned blocks with a combined resource of 3.6 million tonnes grading 0.95% copper and 4.17% zinc in the indicated category and 14.3 million tonnes grading 0.78% copper and 3.19% zinc inferred.
Shares of Yorbeau Resources shot up 37.5% by 11:30 a.m. ET on Wednesday, for a market capitalization of $23.1 million.
Source: https://www.northernminer.com