Eldorado Gold Concluded Purchase of Louvem Property from O3 Mining

SEATTLE (Scrap Monster): O3 Mining Inc. has completed the sale of its Louvem Property to Eldorado Gold Inc. The company had agreed to sell its entire stake in the asset located in Val-d’Or, Quebec, Canada for cash consideration of C$80,000 and the retention by O3 Mining of a 0.5% Net Smelter Return royalty payable to the Corporation on all metal production from the claims constituting the Louvem Property.

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As per agreement, O3 Mining has granted to Eldorado the right to repurchase 50% of the Louvem Net Smelter Return (NSR) royalty at any time following the closure of the agreement for an immediate payment of C$250,000, to be paid in a lump sum.

It must be noted that O3 Mining had acquired the Louvem Property from Monarch Gold Corporation pursuant to an agreement dated 16th March, 2020. Located around 5 kilometres east of Malartic, Quebec, the property comprises of 12 mining claims.

The proceeds from the sale will provide O3 with additional funds to advance its gold exploration assets in the region. Combined, these projects are estimated to host 770,000 gold ounces of inferred resources at 3.04 g/t. Also, Eldorado owns the Lamaque mine complex in Val-d’Or, which hosts proven and probable gold reserves of 877,000 ounces at 6.12 g/t.

The outbreak of the news led to surge in share prices of both the companies.