Balmoral Resources Ltd. (TSX: V.BAR, Stock Forum) said that the company has agreed to acquire a 100% interest in the Detour East property, part of the company's Detour Gold Trend project in Quebec.
The Detour East property, currently under option to the company, adjoins the holdings of Detour Gold who are nearing completion of what is slated to become Canada's largest gold mine.
According to the Balmoral Resources press release, the Detour East Property hosts a number of known gold occurrences, including the Lynx and Rambo prospects, and extends for over 20 kilometres along the Sunday Lake deformation zone which hosts the nearby Detour Gold deposit.
Under the terms of an existing option agreement between Balmoral and Radisson Mining Resources Inc. (TSX: V.RDS, Stock Forum), the company had completed payments and work expenditures required to vest an initial 51% interest in Radisson's interest in the Detour East Property.
Upon completion of the acquisition, Balmoral will hold a 100% interest in 538 claims, which comprise 97% of the Detour East property.
Balmoral will acquire from Radisson the entirety of Radisson's retained interest in the Detour East Property by making a cash payment to Radisson of $200,000, issuing in favour of Radisson 300,000 common shares and granting to Radisson a 2% net smelter returns royalty on the mining claims which comprise the Detour East property.
Balmoral is a Vancouver-based precious metal exploration and development company focused on district scale gold opportunities in North America.
On Thursday, Balmoral was up 1% and was tradinga t $0.91 a share. The company has a market cap of $68.8 million, based on 75.6 million shares outstanding. The 52-week high and low was $1.24 and $0.495 respectively.