TORONTO, June 9, 2016 /CNW/ - Wesdome Gold Mines Ltd. (TSX: WDO) ("Wesdome" or the "Company") is pleased to announce the sale of certain mining claims, including the Joubi and Dubuisson Ouest properties and a portion of the Mine Ecole property in Val d'Or Quebec, to Agnico Eagle Mines Limited ("Agnico Eagle").
The sale price of the claims is C$7 million. The transaction includes surface rights, drill core, resource and intellectual data, infrastructure and equipment, where applicable. As part of the transaction, Agnico Eagle has granted to Wesdome a 2% Net Smelter Royalty ("NSR") on the Mine Ecole property and a 3% NSR on the Joubi property.
Rolly Uloth, President and CEO of Wesdome commented, "We are pleased to divest these non-core assets to our neighbour in the camp, Agnico Eagle. They cover corner extensions of the Goldex sill which can be most efficiently explored and developed from Agnico Eagle's state of the art Goldex Mine infrastructure. Agnico Eagle is a first rate mine operator and Wesdome shareholders will retain upside through the royalties."
Wesdome Gold Mines Ltd. is in its 28th year of continuous gold mining operations in Canada. The Company is currently producing gold at the Eagle River Complex located near Wawa, Ontario from the Eagle River and Mishi gold mines. Wesdome's goal is to expand current operations at both mines over the next four years through mill expansion and exploration. Wesdome has significant upside through ownership of its two other properties, the Kiena Mine Complex in Val d'Or, Quebec and the Moss Lake gold deposit located 100 kilometres west of Thunder Bay, Ontario. These assets are being explored and evaluated to be developed in the appropriate gold price environment. The Company has approximately 129 million shares issued and outstanding and trades on the Toronto Stock Exchange under the symbol "WDO".
SOURCE Wesdome Gold Mines Ltd.
For further information: Lindsay Carpenter Dunlop, Vice President, Investor Relations, 416-360-3743 ext. 25, [email protected] or Rolly Uloth, CEO, 416-360-3743 ext. 29, [email protected]; 8 King St. East, Suite 811, Toronto, ON, M5C 1B5, Toll Free: 1-866-4-WDO-TSX, Phone: 416-360-3743, Fax: 416-360-7620, Website: www.wesdome.com