Two gold exploration companies headed by CEO Ryan Kalt closed off a lawsuit with Barrick Gold over an option agreement in the Red Lake mining camp.
Red Lake Gold and Dixie Gold, both Vancouver-based junior miners, announced this week that it has “successfully resolved” all legal matters relating to the $120-million statement of claim filed by Barrick Gold in the Ontario Superior Court of Justice last June.
The issues have to do with a decision by the junior companies last June to terminate a pair of exploration earn-in option agreements on Dixie’s Red Lake Project and Red Lake Gold’s Whirlwind Jack Project.
The two companies staked sizable land holdings next to Great Bear Resources’ Dixie Gold Project, later acquired by Kinross Gold, and BTU Metal’s Dixie Halo Project.
During the fall of 2021, both junior miners signed earn-in agreements with Barrick enabling the international miner to earn a 70 per cent stake in the Red Lake exploration projects. But the deals didn’t last long and both companies issued termination notices to Barrick in a disagreement over what was considered sufficient exploration work
In an April 18 news release, Red Lake Gold said it’s reached a “termination and mutual release agreement” and is retaining full ownership in Whirlwind Jack.
Nothing from the original earn-in option deal from last November remains.
The company said that a formal dismissal of the claim will be filed in the coming weeks, “at Barrick’s expense.”
Red Lake Gold maintains that Barrick did not perform any ground-based exploration at Whirlwind Jack.
The company said in the release that it considers the matter settled and will make no further comment, expect to say that they are “excited” about the gold and other mineral potential at Whirlwind Jack and will shortly be updating shareholders on their future plans.
Dixie Gold made a similar announcement.
