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Bravada Gold Corporation(TSXV:BVA) announced that it has signed a Letter of Intent with Argonaut Gold Inc. The Letter of Intent outlines the continued exploration of Bravada’s Wind Mountain property. Argonaut committed to a $250,000 drill program under the terms of the letter.
As quoted in the press release:
Under terms of the LOI, Argonaut can fund staged expenditures totalling US$7.5million over a three-year period to earn the option to purchase the project by paying Bravada a price of $30 per ounce of gold-equivalent contained within Measured and Indicated resource categories as determined by independent Qualified Persons. The purchase price will be paid 50% in cash and 50% in shares in Argonaut. Bravada would also retain a one percent net smelter return royalty for any production from the property in excess of the purchased ounces.
Bravada, President, Joe Kizis, announced :
Argonaut is a highly respected and well funded mine operator with two active mines in Mexico and a third nearing production. They produced 72,000 ounces of gold in 2011 and are projecting to produce 88,000-97,000 ounces of gold during 2012. Their experience in open-pit mining and heap leaching of disseminated gold in Mexico should be directly applicable to Wind Mountain and we are pleased to work with them to advance Wind Mountain as their first project outside of Mexico.
Click here to read the Bravada Gold Corporation (TSXV:BVA) press release
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