Alamos Gold has made another “strategic investment” in a Wawa-area gold project.
Toronto’s Red Pine Exploration announced it has raised more than $3.7 million in exploration dollars through the issuance of flow-through shares purchased by Alamos, operators of the Island Gold Mine.
Red Pine’s 6,500-hectare Wawa Gold Project is two kilometres south of the town of Wawa. Citabar LP holds a 35.5 per cent interest in the project.
Alamos’ high-grade Island Gold Mine is 83 kilometres northeast of Wawa and covers 7,926 hectares.
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Alamos recently made another investment in Manitou Gold, a junior miner working a gold property east of Island Gold. As with Manitou Gold, Alamos previously did not hold any shares of Red Pine.
As an owner of Red Pine, Alamos has the right to appoint someone to Red Pine’s board of directors and can appoint two members to Red Pine’s newly created exploration committee.
“The addition of Alamos as a strategic investor is a major step in validating the Wawa Gold Project as a top tier exploration property, and further positions Red Pine to deliver shareholder value through aggressive exploration,” said Red Pine CEO Quentin Yarie in a Dec. 31 news release.
“Alamos’ investment will allow us to continue our exploration plans at the Wawa Gold Project, expanding known mineralization along strike and at depth, while also identifying and evaluating new targets across the land package. We are excited to be working with Alamos and are eager to learn from the exploration and operating experience they bring to the project.”
Red Pine’s property contained a number of former gold mines with historic production of more than 120,000 ounces.
The company’s main exploration focus is the Surluga and the Minto Mine South Deposits, which contain more than 700,000 ounces of gold at an average grade of 5.3 grams per tonne, both indicated and measured, according to a technical report.
