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Homestake Resource Corporation (TSXV:HSR,FWB:B6IH) entered into a property option agreement with Agnico-Eagle Mines Limited: Agnico-Eagle has the option to earn up to 65% interest in the Homestake Ridge Project with the staged expenditure of $25.3 million over 5 years.
Homestake Resource Corporation (TSXV:HSR,FWB:B6IH) entered into a property option agreement with Agnico-Eagle Mines Limited: Agnico-Eagle has the option to earn up to 65% interest in the Homestake Ridge Project with the staged expenditure of $25.3 million over 5 years.
Agnico-Eagle can spend $10.3 million by December 31, 2014 to earn a 51% interest in the Homestake Ridge Project, including $1.8 million of expenditures as a firm commitment to be spent by December 31, 2012. Agnico-Eagle can elect to earn an additional 14% by expending a further $15 million or producing a Feasibility Study by December 31, 2016 resulting in transfer of a 65% ownership in the project. Agnico-Eagle will have the additional option to further increase its ownership interest by an additional 5% by arranging Homestake’s proportionate share of production financing. Agnico-Eagle expenditures can be in the form of exploration expenditures or in direct payments to Homestake.
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