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Mandalay Resources to sell Ulu property to WPC Resources

Last updated: 02:02 22 Aug 2017 AEST, First published: 21:02 21 Aug 2017 AEST

Gold ore
Measured & indicated resources are 2.5mln tonnes at 7.53 grams per tonne

Mandalay Resources Corp (TSE:MND) has agreed to offer WPC Resources Inc (CVE:WPQ) a new option to acquire a 100% interest in the Ulu gold property.

The new option agreement will supersede the Ulu option agreement dated May 30, 2014 and the Lupin Mines Inc purchase agreement dated October 31, 2016 with respect to Ulu.

The latest letter agreement calls for Mandalay to complete permanent reclamation of historic surface mining and infrastructure disturbances that are beyond the needs of the exploration-stage project, after which WPC can acquire the property, which is located in Nunavut Territory, Canada.

To acquire the property WPC would need to pay Mandalay C$200,000 upfront on the signing of the new Ulu option agreement, then C$200,000 on or before 31 May, 2018, and issue Mandalay 15mln shares in WPC.

WPC would also need to post all future security required by the Kitikmeot Inuit Association (KIA) and the Nunavut Water Board (NWB) relating to future exploration-stage activities on Mining Lease #3563 and related water license in order to transfer the mining lease, and assume all future reclamation and site monitoring expenses and liabilities associated with the Ulu property in a manner reasonably satisfactory to Mandalay, the KIA and the NWB.

Mandalay believes it can accomplish the necessary reclamation to permanently reduce the historic disturbances on the site to only those needed to support future exploration for the amount of the current C$1.6 million security and is preparing to apply for permits to accomplish this permanent reclamation.

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on 25/6/19