Shares in junior Metalcorp more than trebled on Friday as it announced neighbour Barrick had entered a minimum C$3.7 million earn-in to its Hemlo East property.
Barrick operates the adjacent Hemlo gold mine, where it said last month it planned to extend the minelife by transitioning it to a "modernised tier two asset with a purely underground operation" as the openpit wound down.
Metalcorp said under the Hemlo East agreement, Barrick must pay an initial $3 million within three days of the TSX Venture Exchange accepting the agreement, plus spend at least $700,000 on exploration within the first year.
To earn up to 80%, Barrick must spend at least $4.5 million and deliver an NI 43-101 report within three years.
Barrick could withdraw at any time after the initial $3.7 million worth of commitments.
If the major completed the earn-in, the pair would form an 80:20 joint venture for Hemlo East with funding on a pro-rata basis.
Metalcorp had last raised $100,000 in September and settled debt for equity, both at 3c per share. Its website is under construction.
Shares (TSXV: MTC) in the Ontario-focused junior, which have traded about 3c for much of the past year, shot up 220% on Friday to close at 8c, capitalising it at $7.8 million (US$6 million).
Melkior deal
Meanwhile fellow TSXV-listed Melkior Resources said it had also closed an option/JV agreement with Barrick, at its White Lake project, 20km east of the Hemlo mine.
It said Barrick could earn up to 75% of White Lake by spending $4 million on exploration within five years.
The pair would then form a 75:25 joint venture.
"With Barrick as our partner to move the White Lake project forward, even a small discovery has the potential to be economic because of the property's proximity in relation to their processing facilities," Melkior CEO Jonathon Deluce said.
It's the junior's second deal with a gold producer after finalising an agreement with Kirkland Lake Gold in September, which will see Kirkland invest $1 million in the company and spend up to $110 million to earn 75% of Melkior's Carscallen project in Ontario.
Melkior shares (TSXV: MKR) have risen from 6c to a recent high of $1.25.
They gained 3.3% on Friday to close at 93c, capitalising it at $18.6 million (US$14.2 million).
