Foxpoint Resources, a Vancouver-based company, announced this fall it had reached an agreement with Kinross Gold Corp. to purchase the Kirkland Lake operations, including Macassa mine, Lakeshore mine, Wright Hargreaves and Teck Hughes properties and Kirkland Minerals.
The company has been searching for developed gold assets that have near-term, low-cost production over the past year.
The terms of the purchase agreement include an acquisition price of $5 million - $1 million paid upon closing and $1 million paid over four successive six-month periods - and a net smelter royalty which operates on a sliding scale, beginning at $300 US per troy ounce of gold.
The Kirkland Lake camp has produced 11 per cent of the total gold production of Canada, a total of 24 million ounces in past production.
