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Newmont, Kirkland Lake Gold team up on US$75 million exploration deal

"Strategic alliance" will scope out gold potential around Holt Mine
Holt Mine face
Holt Mine (Kirkland Lake Gold photo)

The world's leading gold company thinks there's still hope for the shuttered Holt Mine near Matheson.

Newmont Corporation has entered into a "strategic alliance agreement" with Kirkland Lake Gold concerning exploration and development around the Holt complex, near Matheson, and Newmont properties in Timmins.

According to an Aug. 17 news release, Denver-headquartered Newmont is paying Kirkland Lake Gold US$75 million to acquire an option on certain unspecified mining and mineral rights pertaining to the Holt Mine property.

Newmont said in the release that the alliance provides Kirkland Lake Gold with capital to "evaluate strategic alternatives for the future of the Holt mining complex, explore on its existing properties, and evaluate other regional opportunities where Kirkland and Newmont may cooperate in the future."

The agreement does not involve any other Holt Complex assets, including the Holloway and Taylor Mines.

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Kirkland Lake Gold retains ownership of the Holt Mine property and will act as manager of all activities concerning this alliance.

Newmont can exercise the option in the event Kirkland Lake Gold intends to restart operations at the Holt Mine and process material.

Newmont operates the Musselwhite Mine in northwestern Ontario along with the Hoyle Pond underground mine and Hollinger open-pit mine in and around Timmins.

Kirkland Lake Gold operates the Macassa Mine in Kirkland Lake, the Detour Lake Mine, north of Cochrane, and the Fosterville Mine in Australia's state of Victoria.