Falcon Gold Corp. (TSXV:FG) has signed an option and joint venture agreement with Canyon Copper Corp., (TSXV:CNC) pursuant to Falcon earning up to an 80 percent interest in the New York Canyon Property which hosts an advanced-stage copper project, located in the Santa Fe Mining District in Nevada. Additionally, Falcon Gold Corp announced that it is arranging a non-brokered private placement of up to 10,000,000 units priced at $0.05 for total gross proceeds of up to $500,000.
As quoted in the press release:
Under the option agreement, Falcon may earn an initial 60% interest over a four year term by:
- expending $2,000,000 on exploration and maintenance of the Property;
- issuing to Canyon Copper a total of 1.5 million Falcon common shares;
- making cash payments to Canyon Copper totaling $150,000; and,
- granting to Canyon Copper 500,000 share purchase warrants exercisable at $0.10 for a 2 year period.
To increase its interest to 80%, Falcon has agreed to issue to Canyon Copper an additional 1.0 million common shares and complete a Preliminary Economic Assessment (“PEA”). The PEA report is to assess, in a preliminary manner, the potential of placing all or any part of the Property into Commercial Production in such form and detail as set out in National Instrument 43-101. A Finders’ Fee will be payable in connection with the acquisition of the Property. The finder’s fee is payable to two arms-length individuals, and will be payable in common shares of Falcon valued at 10% of the deemed value of the acquisition over the first 12 months, subject to regulatory approval.
Get Our Expert Guide to Copper Investing FREE!Download this FREE Special Report, From LME Copper to Copper ETFs: Understanding Today’s Copper Price for Investing in Copper.