Khalkos signs Option Agreement with Dundee Precious Metals Inc. for the Malartic property
MONTREAL, QUEBEC--(Marketwired - May 23, 2017) - Khalkos Exploration Inc. ("Khalkos") (TSX VENTURE:KAS) is pleased to announce the signature of an option agreement with Dundee Precious Metals Inc. ("Dundee") granting Dundee the option to earn a maximum undivided interest of 71% in the Malartic gold property. The Malartic property is held 100% by Khalkos and is located proximal to the prolific Cadillac fault, at approximately 12 km north-west of the Canadian Malartic mine (Agnico Eagle-Yamana Gold Inc. mines) and 2 km east of the Lapa mine (Agnico Eagle mine). The closing of this transaction is subject to certain conditions, including the approval of the TSX Venture Exchange.
Under the terms of the agreement, Dundee can acquire a maximum interest of 71% in the Malartic property over a period of six years on the following terms:
| 1) | First option to acquire a 51% interest in the first three years |
| Dundee shall have the option to acquire a 51% interest in the first three years by: | |
| i) Making cash payments totalling $412,500, of which $92,500 shall be payable upon the closing; | |
| ii) Issuing to Khalkos 70,000 common shares of Dundee, of which 10,000 shall be issued upon the closing; and | |
| iii) Incurring exploration expenditures totalling $2,500,000 including a firm commitment of $500,000 for the first year. | |
| 2) | Second option to acquire an additional 20% interest (for a total of 71%) in the following three years |
| Once Dundee has acquired a 51% interest, it shall have the option to acquire an additional 20% interest in the following three years by incurring exploration expenditures totalling $3,500,000. |
Dundee shall act as operator during the option periods.
Dundee shall also have the right to participate, to a minimum of 50% of the amount raised, in all subsequent financings of Khalkos.
Robert Gagnon, President of Khalkos, states: "The Khalkos team is proud to partner with a solid mining producer such as Dundee to continue fieldwork on its Malartic property."
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Contact
Robert Gagnon, P.Geo
President
(819) 825-2303
rgagnon@khalkos.com
(514) 510-7964
www.khalkos.com
Christian Guilbaud, B.A.A
Corporate Development