Under the terms of the agreement, Declan can acquire up to a 70% interest in Gibbon’s Creek by incurring $6,500,000 of staged exploration expenditures and paying $1,500,000 in cash and making share payments.
Declan will also provide 2% net smelter royalty on commencement of commercial production and 1% of which can be purchased by Declan for C$1m for Lakeland.
Lakeland president Jon Armes said the agreement will allow for an expanded program at Gibbon Creek’s in 2014.
"We are very pleased to have reached an agreement with Declan, where they have the opportunity to earn in to the Gibbon’s Creek Property and join efforts with our team," Armes added.
In addition to comprising 5 claims totaling 12,771 hectares, the Gibbon’s Creek property involves the Lakeland Resources’ 35,463h Riou Lake property.
