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Kootenay Gold Inc. (CVE:KTN) reports that it has entered into an option agreement with First Mexican Gold Corp (CVE:FMG) and International Millennium Mining on four properties, located in Sonora State, Mexico.
Kootenay Gold Inc. (TSXV:KTN) reports that it has entered into an option agreement with First Mexican Gold Corp (TSXV:FMG) and International Millennium Mining on four properties, located in Sonora State, Mexico.
The press release is quoted as saying:
The Option Agreement allows First Mexican and IMI to acquire a 60% undivided interest by paying US$25,000 on signing, issuing an aggregate 1,200,000 common shares of FMG over 5 years and spending US$2 million on the property over 5 years. Plus Kootenay retains a 1% NSR interest which can be purchased for US$1 million. The earn-in period can be accelerated at the discretion of FMG. At completion of the earn-in a JV Agreement will be formalized.