The Optionee can earn a 51% interest in the Tuscarora Gold Project by making certain cash payment
American Pacific Mining, through its wholly owned subsidiary, American Pacific Mining (US) Inc., it has entered into an earn-in and option to form joint venture agreement (the “Earn-In Agreement”) in respect of the Company’ Tuscarora Gold Project with Elko Sun Mining Corp. (the “Optionee”), a private British Columbia Company.
Warwick Smith, CEO of the Company, commented: “Tuscarora is a high-grade epithermal system that has produced some great results previously so we are pleased to see it receive more exploration in the coming months. This is another strong transaction for American Pacific shareholders that will create value via exploration without us having to use our own treasury.”
Eric Saderholm, President of the Company, commented: “Nevada is the top investor-friendly jurisdiction for mining, and we consider Tuscarora a premier property worthy of extensive evaluation. I look forward to working alongside our Joint Venture team as we move this gold discovery forward at Tuscarora.”
Key Points of the Agreement
The Optionee can earn a 51% interest in the Tuscarora Gold Project by making certain cash payment to or on behalf of the Company in the aggregate amount of $200,000, making certain share payments to the Company, and funding exploration expenditures of $1.35 million towards the Tuscarora Gold Project over the next two years (Phase 1).
Subject to the Optionee’s completion of Phase 1, the Optionee will have four years from the date of the Earn-In Agreement (the “Option Period”) to exercise an option to earn an additional 14% interest by making certain additional share payments to the Company and funding further exploration expenditures of $3 million towards the Tuscarora Gold Project (Phase 2).
Subject to its completion of Phase 2, the Optionee may exercise an option to earn a final 15% interest (for total interest of 80%) by completing a pre-feasibility study on the Tuscarora Gold Project before the end of the Option Period (Phase 3).
The Optionee will make an initial $50,000 non-refundable cash payment (as part of the aggregate $200,000 cash payments under Phase 1) to the Company within the first four months of the Option Period.
The Optionee will also make all payments to holders of underlying property interests and pay claim fees.
The Optionee will be the operator of the Tuscarora Gold Project and, upon earning-in an interest, a joint venture management committee will be formed.
Source: Company Press Release