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Estrella Gold Corporation (TSXV:EST) and Cliffs Natural Resources Exploration are exploring the Yanac Property as a Joint Venture Project with both companies holding a 50% interest in the property.
As quoted in the press release:
Cliffs can acquire an additional 20% interest in the Yanac Project, to a total 70% interest, by spending a minimum of US$4,000,000 (including the above mentioned US$750,000) and completing 3,000 meters of drilling within four years of selection. If Cliffs fails to acquire the additional 20%, the property reverts to Estrella. Upon earning 70%, Cliffs can acquire an additional 10% interest in the Yanac Project, to a total 80% by completing an NI 43-101 Compliant Pre-Feasibility Study or by defining a compliant Mineral Resource containing a minimum of 1,000,000, ounces of gold or gold equivalent, within four years of earning its 70% interest. If Cliffs elects not to earn an additional 10% interest, Cliffs will pay Estrella US$2,000,000 within 60 days and the parties will fund their proportional interest, subject to conventional dilution. If either party’s interest in the Project is reduced to 10%, that interest will be convert to a 2% NSR royalty.
Estrella Gold Interem CEO Mark Brown said:
Yanac is an exciting new porphyry copper discovery that provides Estrella with the upside of a major deposit, if exploration is successful. The identification and selection of Yanac demonstrates the benefits of our prospect generator model.
Click here to read the Estrella Gold Corporation (TSXV:EST) press release
Click here to see the Estrella Gold Corporation (TSXV:EST) profile.