New Gold Project for Nevada Exploration and McEwen Mining

Nevada Exploration (TSXV:NGE) announced that McEwen Mining has designated 30 percent carried interest in a new gold project in Grass Valley to Nevada Exploration as per the previously announced Exploration Agreement.

As quoted in the press release:

As per the terms of the Exploration Agreement, McEwen Mining has granted NGE a 30% carried interest in the Grass Valley Designated Property and paid NGE $73,500 USD. McEwen Mining is the project manager, has sole discretion on the nature and timing of all exploration and development activities, and is solely responsible for payment of all costs incurred in respect of the project. If McEwen Mining elects to continue to maintain the Grass Valley Designated Property, McEwen Mining will pay NGE $100,000 USD on the first through fourth anniversaries of acquiring the Designated Property, and then $250,000 USD on each subsequent anniversary. If McEwen Mining completes a Production Decision Report on the Designated Property that McEwen Mining deems sufficient to base a decision to commence production, the Designated Property will advance under a Joint Venture agreement, at which time both parties will be required to fund their pro rata share of project expenditures or be diluted. If either party’s interest is diluted below 10%, such party’s interest converts to a 2% NSR.

Click here to view the full press release.