The Borden Lake South property comprises 20 mining claims representing 294 claim units covering approximately 4,704 hectares, located 10 kilometres east of Chapleau and is adjacent to Probe's 100 per cent owned Borden Gold project.
Under the agreement, Probe will have a 51 per cent interest, while Reliant will retain a 49 per cent interest in the joint venture. Probe will make a cash payment of $200,000 and issue 100,000 common shares of Probe to Reliant once a definite agreement has been settled.
Probe has an opportunity to earn an additional 24 per cent interest with the delivery of a feasibility study within five years from the start of the agreement, which would bring its total share to 75 per cent.
"We are very pleased with the acquisition of our 51 per cent interest in the Borden Lake South property,” Dr. David Palmer, Probe’s president and CEO, said in a news release. “It is an excellent fit with our strategy to consolidate the Borden Belt. Probe controls over 400 square kilometres of virtually unexplored ground in Ontario's newest gold district and we see significant potential for additional gold discoveries in this area."