Altan Nevada to Partner with Gold Resource Corp on Radar Project

Altan Nevada Minerals (TSXV:ANE) has entered an option agreement with a subsidiary of Gold Resource Corporation (NYSE MKT:GORO) to fund exploration on roughly 88.7 percent of Altan’s Radar gold-silver project in Nevada. Under the terms of the agreement, Gold Resource must make a $50,000 payment to Altan on the effective date of the agreement, with annual payments increasing by a further $50,000 each year to a maximum of $250,000 annually. Gold Resource must also meet work commitments amounting to an additional $250,000 each year in order to maintain the agreement in good standing.

Certainly, the interest by Gold Resource Corp in the Radar project signifies confidence in the gold sector despite weaker prices as of late.

Furthermore, according to the press release:

At any time during the term of the Agreement, the Property can be purchased, at the election of Gold Resource Corporation, for a one-time payment of $1,500,000. Altan Nevada then becomes entitled to receive a royalty equal to 3% of the Net Smelter Returns (“NSR”) from the production of minerals on the Property, which can be reduced to a 2% NSR royalty by way of a one-time payment by Gold Resource Corporation of $1,000,000.

Altan Nevada president and CEO, Evan Jones, commented:

As shareholders will be aware, the ability for junior explorers such as Altan Nevada to raise capital to fund a significant drilling program is prohibitively dilutive in the current market environment. As such, by entering into this agreement, our shareholders will be able to participate in the drilling of a project that we otherwise may not have been in a position to evaluate for some time.

This is the second property that Altan Nevada has secured a partner to advance in the past twelve months. This independently validates our view that the company’s exploration portfolio is compelling.

Click here to read the Altan Nevada Minerals Ltd. (TSXV:ANE) press release