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Helio Resource Corp. (TSXV:HRC) and Solomon Resources Ltd. (TSXV:SRB) announced that they have entered into a letter of intent (LOI) under which Solomon is able to earn a 60-percent interest in Helio’s Damara gold-tin project.
Helio Resource Corp. (TSXV:HRC) and Solomon Resources Ltd. (TSXV:SRB) announced that they have entered into a letter of intent (LOI) under which Solomon is able to earn a 60-percent interest in Helio’s Damara gold-tin project.
The agreement is comprised of two stages; after the first stage is complete, Solomon’s interest will total 51 percent.
As quoted in the press release:
After successful completion of the Stage 1 earn-in requirements, Solomon has the option to increase its ownership in the DGP project from 51% to 60% by spending an additional $1.5M in Year 4, and issuing an additional 5,000,000 SRB shares to Helio. Upon successful completion of Stage 2 the companies will form a 60:40 Joint Venture company in favour of Solomon.
If Solomon successfully completes Stage 1 of the earn-in but elects not to proceed to Stage 2 to earn a 60% interest in the DGP, the companies will form a 51:49 Joint Venture company in favour of Solomon.