Gunsynd investee company Richmond Hill Resources signs LOI to acquire Quebec licences
Richmond Hill Resources PLC (AQSE: ) has signed a letter of intent with Three Mile Beach Ltd to acquire exploration licences in Quebec.
The mining investment vehicle and exploration company Gunsynd () holds a 5.9% interest in Richmond Hill, and also holds loans of just over £153,000 to the company.
The Saint Sophie copper project spans 87 square kilometres and is located in the Beauce region of Quebec, 60 kilometres south of The Becancour Battery Park and 150 Km North-East of Montreal.
The project is comprised of multiple worked indices and historic mines of high-grade native copper, hosted in sedimentary rock and epithermal vein systems, with 146 claims.
Grades are known to run as high as 55% in grab samples, with other high grade returns from trenching. High grade silver, gold and molybdenum has also been identified.
In consideration for Richmond Hill incurring fees, expenses and other costs in connection with the due diligence investigations, Three Mile has granted to Richmond Hill a 60-day period of exclusivity to allow Richmond Hill to conduct due diligence and to decide whether to proceed.
"Having worked directly in Mineral exploration in the province of Quebec, Canada, I am encouraged by the proposed acquisition of the Saint Sophie Copper project that may present a promising future for Richmond Hill to seek out a high-grade ore body in a sought-after, tier-1 mining jurisdiction,” said Gunsynd’s Peter Ruse.
“The property has numerous historic mineralised occurrences and has had very little modern exploration."
View from Vox
Such high grade material is hard to find, and the transaction looks like a useful opportunity for Richmond Hill and, by extension, Gunsynd. We’ll have to see how the due diligence goes, of course, but it’s good to see deals being done in a proactive manner in what continues to be a tough market for all concerned.
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