TSX:WDO
TORONTO, June 9, 2016 /CNW/ - Wesdome Gold Mines Ltd.
(TSX: WDO) ("Wesdome" or the "Company") is pleased to announce the
sale of certain mining claims, including the Joubi and Dubuisson
Ouest properties and a portion of the Mine Ecole property in
Val d'Or Quebec, to Agnico Eagle
Mines Limited ("Agnico Eagle").
The sale price of the claims is C$7
million. The transaction includes surface rights,
drill core, resource and intellectual data, infrastructure and
equipment, where applicable. As part of the transaction,
Agnico Eagle has granted to Wesdome a 2% Net Smelter Royalty
("NSR") on the Mine Ecole property and a 3% NSR on the Joubi
property.
Rolly Uloth, President and CEO of
Wesdome commented, "We are pleased to divest these non-core assets
to our neighbour in the camp, Agnico Eagle. They cover corner
extensions of the Goldex sill which can be most efficiently
explored and developed from Agnico Eagle's state of the art Goldex
Mine infrastructure. Agnico Eagle is a first rate mine
operator and Wesdome shareholders will retain upside through the
royalties."
ABOUT WESDOME
Wesdome Gold Mines Ltd. is in its 28th year of continuous gold
mining operations in Canada. The Company is currently
producing gold at the Eagle River Complex located near Wawa, Ontario from the Eagle River and Mishi
gold mines. Wesdome's goal is to expand current operations at
both mines over the next four years through mill expansion and
exploration. Wesdome has significant upside through ownership
of its two other properties, the Kiena Mine Complex in Val d'Or, Quebec and the Moss Lake gold
deposit located 100 kilometres west of Thunder Bay, Ontario. These assets are
being explored and evaluated to be developed in the appropriate
gold price environment. The Company has approximately 129
million shares issued and outstanding and trades on the Toronto
Stock Exchange under the symbol "WDO".
SOURCE Wesdome Gold Mines Ltd.