* Sign deal on Talbot Lake gold project * Abbastar has right
to earn 100 pct interest in project
Sept 22 Canada's Abbastar Resources Corp
ABA.V said it had signed a deal that will give it the option
to acquire an 100 percent interest in Denison Mines' (DML.TO)
Talbot Lake gold project in northern Ontario.
Shares of Abbastar Resources fell 17 percent to 25 Canadian
cents, while those of Denison Mines were up nearly 10 percent
at C$2.25 in Tuesday afternoon trade on the Toronto Stock
Under the deal, Abbastar said it may earn an initial 70
percent stake by incuring expenses of $4 million over five
years. Abbastar may opt to earn an additional 30 percent stake
by paying $250,000 and expending an additional $3 million on
the project on or before Sept. 30, 2017.
If Abbastar elects not to earn the additional 30 percent, a
70-30 joint venture of Abbastar and Denison will be formed and
governed by a committee comprising two people from each
"Acquiring such a significant high grade gold asset in this
strong precious metal market bodes well for the future of
Abbastar," Chief Executive John Good said in a statement.
"Given the strong market demand for gold, the Talbot Lake
gold project has become a very important and valuable asset in
the growth of Abbastar," he added.
The Talbot Lake project, which is located within the gold
producing Uchi Subprovince of northwestern Ontario, has
produced in excess of 40 million ounces of gold, Abbastar
(Reporting by R. Manikandan in Bangalore; Editing by Maju