Titan will spend $35m on exploration over a period of five years to earn an 80% ownership stake in the Mineral Ridge Property
Canadian gold miner Scorpio Gold has granted an option to Titan Mining, an Augusta Group company, to earn an 80% interest in the Mineral Ridge property, located in Esmeralda County, Nevada, US.
Under the terms of the agreement, Titan is required to spend $35m on exploration over a period of five years to earn an 80% ownership stake in the Mineral Ridge Property.
The Mineral Ridge Property is a fully permitted mine and mill operation compriding approximately 14,000 acres of patented, fee-owned, and unpatented mining claims, including certain water rights.
Titan Mining has option to acquire 100% stake in Mineral Ridge Property
In order to acquire 100% interest in Mineral Ridge Property, Titan is entailed to spend $7m by 01 January 2022 and pay $35m cash on or before 31 December 2022.
Scorpio Gold CEO Brian Lock said: “The Titan agreement provides a direct opportunity to build on the substantial value of the Mineral Ridge Property that was outlined in the 2018 updated feasibility study.
“Titan has stated their intention to immediately commence a comprehensive drilling campaign that will focus on the down-dip and strike extensions of the existing deposits and systematically test seven other high-priority exploration targets.
“This will be the first wide-ranging exploration drill program conducted on the nearly 14,000 acre Mineral Ridge Property in the history of Scorpio Gold’s tenure.”
Brian Lock said that with Titan advancing Mineral Ridge, Scorpio Gold will focus on its Goldwedge Property, including advancing its toll milling operations and furthering its exploration programmes on the Goldwedge and Keystone-Jumbo deposit areas.
Recently, Scorpio Gold has signed a letter of intent (LOI) with Round Mountain Gold and KG Mining to acquire the Manhattan Project Properties in Nevada.