Crocodile Gold Corp. (TSX:CRK,OTCQX:CROCF) announced that it has entered into a sale agreement under which it will sell Phoenix Copper Ltd. (ASX:PNX) 100 percent of its Iron Blow and Mount Bonnie massive sulfide deposits for a 2-percent royalty for “any gold and silver production from the related tenements.”
As quoted in the press release:
Crocodile Gold will retain an option to buy back a 30% interest in the Iron Blow and Mount Bonnie properties within six months of Phoenix Copper completing a Feasibility Study, by paying three times the accumulated exploration expenditures on these tenements.
Crocodile Gold has also entered into an Option (Farm-In) agreement (the ‘Agreement’) with Phoenix Copper, which allows Phoenix Copper the ability to earn up to a 90% interest in the nearby Burnside, Moline and Maud Creek base metal and gold exploration projects through a commitment to spend a total of $4 million in exploration expenditures over the next four years. Under the Agreement, Crocodile Gold will retain the option to acquire 90% of any gold and silver deposit discoveries on any of the properties by paying Phoenix Copper three times the accumulated expenditure related to that deposit. This exploration agreement allows Phoenix Copper to explore for gold and base metals around the Maud Creek Mineral Resource while Crocodile Gold retains 100% ownership of the Maud Creek deposit and surrounding prospects on Mineral Licence ML30260.
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