Avel, Iamgold Kalana Project Exploration Agreement Lapses

By MidnightTrader.com Staff,

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Avnel Gold Mining Limited (AVK.TO) reports that the option agreement between it and IAMGOLD Corporation (IMG.TO) to enter into joint venture arrangements in respect of Avnel's Kalana Exploitation Permit has automatically lapsed.

The agreement provided IAMGOLD the opportunity to earn an initial 51% interest in Avnel's 80% share of the Kalana project by spending a minimum of $11 million on exploration activities over three years and by delivering a NI 43-101 compliant resource study of at least 2 million ounces of gold as well as proceeding with a feasibility study. At the end of the exploration period, extended by mutual agreement to February 28, 2013, IAMGOLD had spent approximately $32 million on exploration activities at Kalana but had not delivered a resource study which met the vesting threshold, leading the option to automatically lapse.

Avnel is unchanged at 35 cents, while Iamgold is up 5 cents to $7.00, which is near a yr low of $6.88.

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This article appears in: Investing Commodities
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