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.