Kootenay Gold Inc. (CVE:KTN) reports that it has entered into an option agreement with Pinecrest Resources Ltd. (CVE:PCR.P) on Espiritu property, Sonora State, Mexico.
The press release is quoted as saying:
The Option Agreement allows Pinecrest to acquire a 50% undivided interest by issuing an aggregate 750,000 common shares of Pinecrest, over 3 years, with 200,000 issuable within 5 business days after receipt of approval by the TSX Venture Exchange (“TSXV”) and spending US$1 million on the property over 4 years. At completion of the earn-in a JV Agreement will be formalized.
Kootenay Gold’s President and CEO, James McDonald says:
“We are pleased to have Pinecrest as a partner to begin exploration of the Espiritu Concessions. The numerous showings identified on the property to date, combined with overall size and strength of the mineral system bode well for the discovery polymetallic deposits at Espiritu“.
Kootenay Gold’s Chairman, Ken Berry says:
“In keeping with Kootenay’s generative model to develop near term discoveries and long-term sustainable growth, the Espiritu is a large-scale target that warrants immediate further investigation and drill testing. The J/V with Pinecrest will allow Kootenay to fast-track exploration on Esiritu as we continue to prioritize the aggressive ongoing development of our core asset the Promontorio Silver Project in Sonora, Mexico”.