Timberline Resources Set to Increase Ownership of Butte Highlands Gold Mine to 100-Percent

Timberline Resources Corporation (TSXV:TBR) signed a Letter of Intent to increase its ownership stake in the Butte Highlands Gold Project to 100-percent.

As quoted in the press release:

Terms of the agreement call for Timberline to acquire the remaining 50-percent interest in Butte Highlands JV, LLC in exchange for a combination of the Company’s common stock and cash totaling $7-million, along with a Net Smelter Return (NSR) production royalty. Also pursuant to the agreement, Highland Mining will completely cancel its outstanding loan, including principal and interest, to Butte Highlands JV, LLC for more than $24-million of development costs incurred at the project to-date. The deal is expected to close in the current quarter, subject to standard closing conditions and regulatory approvals, including the approval of the NYSE Amex and the TSX Venture Exchange.

Timberline CEO Paul Dircksen said:

“We are pleased to consolidate a 100-percent interest at Butte Highlands on favorable terms and, based on currently available information and timelines, we continue to anticipate the issuance of the required permits for the commencement of gold production later this year.”

Click here to read the Timberline Resources Corporation (TSXV:TBR) press release