American Bonanza Gold Corp. says it has reached an agreement with partner Golden Band Resources Inc. that will see the companies acquire Barrick Gold Inc.'s stake in the Iskut joint venture.
The transaction, which is being completed for an undisclosed amount, will give the two companies all of Iskut, which is part of the Snip Gold Camp Trend in northwestern British Columbia.
The property will be divided between American Bonanza, which will hold a 47.5-per-cent stake and Golden Band, and Golden Band, which will have a 52.5-per-cent interest and also operate the project.
Iskut is composed of 10 claims that cover about 4,250 hectares, and was last explored in 1996 by Homestake, which owned the property before Barrick joined the joint venture.
The companies say they will review the historical results of the property as well as recent developments in the Snip Mine area to determine a short term exploration plan. In a related arrangement, Golden Band has a 10-year option to acquire Barrick's Snip Mine property if the company decides to sell it.