The Amanda property is known for several gold occurrences. Credit: Red ivory/Shutterstock.

Mosaic Minerals has signed a letter of intent with Canadian mining company Iamgold to gain full ownership of the Amanda property in Jamésie, Quebec.

Under the terms of the letter of intent, Mosaic will take over the Amanda property entirely, committing to either fulfil its original work commitments of C$250,000 ($180,852) by 31 October 2024 or compensate Iamgold in cash for any shortfall.

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Additionally, Mosaic has to issue three million shares to Iamgold and grant the miner a 2% royalty.

A clause stipulates that if Mosaic files a NI 43-101 report indicating at least 300,000oz of gold, a C$250,000 cash payment to Iamgold is required within 90 days.

Iamgold retains a Back-in Right, which allows it to secure up to a 75% interest in the Amanda project if it meets specific conditions.

The Back-in Right is triggered by the filing of a 43-101 report with at least 300,000 indicated ounces of gold and gives Iamgold 180 days to act.

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To exercise this right, Iamgold is required to commit to four times the exploration expenditures made by Mosaic since acquiring the property, with the exact amount contingent on Mosaic’s total exploration spend.

The completion of this acquisition is subject to the approval of the Canadian Securities Exchange and other regulatory bodies.

Mosaic’s management is already planning a summer exploration programme at the 7,677-hectare Amanda project to assess the significance of new gold showings discovered in 2020.

The property is known for several gold occurrences associated with iron formations and paragneiss, featuring mineralisation of pyrite, pyrrhotite, arsenopyrite and gold.

Earlier this month, Iamgold was in the news for selling the former Eldrich Gold Mine in the north-west of Rouyn-Noranda and the Porcupine West Gold property in Quebec to Globex Mining Enterprises.