Aurizon Mines buying into Quebec gold properties

The Canadian gold miner added that it also signed a a letter of intent with Azimut and Everton to get up to an undivided 60 percent ownership in the Opinaca property in the same region

Posted: Friday , 17 Sep 2010

(Reuters) -

Canadian gold miner Aurizon Mines (ARZ.TO) said on Thursday it will acquire up to a 65 percent stake in Everton Resources Inc's (EVR.V) Wildcat property in the James Bay area in Quebec.

Separately, it also signed a letter of intent with Azimut Exploration Inc (AZM.V) and Everton to get up to an undivided 60 percent ownership in the Opinaca property in the same region.

Aurizon, which has been benefiting from higher gold prices, is looking to boost its presence in Quebec.

Aurizon said it can earn a 50 percent interest in the Wildcat project by incurring expenditures of $3.3 million over four years. After that, it may elect to earn an additional 15 percent by paying $300,000 over three years. [ID:nASA00QJ1]

For acquiring half of the Opinaca project, Aurizon has to pay $580,000 and incur costs of $6 million over four years. Thereafter, it can elect to acquire another 10 percent for $300,000 over three years.

For both the projects, Aurizon will be the operator during the earn-in period for the initial 50 percent interest in the project, after which a joint venture will be formed, Aurizon said in a statement.

The Wildcat property comprises 411 mining claims, covering 21,476 hectares, while the Opinaca property comprises 649 mining claims.

Aurizon Mines shares, which have gained 17 percent in value since the company reported strong quarterly earnings Aug. 12, closed at C$6.48 Wednesday on the Toronto Stock Exchange. (Reporting by Bhaswati Mukhopadhyay in Bangalore; Editing by Anne Pallivathuckal)

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