The Conversation (0)
Paget Minerals Corp. (TSXV:PGS) has entered into an option agreement with Sundance Minerals Ltd., whereby Paget can earn up to a 60% interest in Sundance’s San Ricard0 Gold-Silver project located in the gold-silver-copper belt in Sonora State, Mexico.
Paget Minerals Corp. (TSXV:PGS) has entered into an option agreement with Sundance Minerals Ltd., whereby Paget can earn up to a 60% interest in Sundance’s San Ricard0 Gold-Silver project located in the gold-silver-copper belt in Sonora State, Mexico.
As quoted in the press release:
Paget has an exclusive right to earn an initial 51% interest (the “First Option”) in the San Ricardo Project by incurring US$500,000 in exploration expenditures by the first anniversary of the closing date and an additional US$5,000,000 by the fourth anniversary of the closing date and by reimbursing Sundance for 51% of the US$250,000 in payments made or to be made to the underlying owner (the “Underlying Payments”). Paget also retains an exclusive right to earn an additional 9% interest (the “Second Option”) by funding a pre-feasibility study in the three-year period following the 51% earn-in date. In order to maintain the Second Option in good standing, Paget must incur US$1,000,000 in exploration expenditures by each of the first, second and third anniversaries of the 51% earn-in date and must reimburse Sundance for an additional 9% of the Underlying Payments.
Once Paget has earned a 60% interest in the San Ricardo Project or Paget does not exercise the Second Option, Paget and Sundance shall elect either to participate in further exploration programs on a prorata basis or have their interest diluted. If the interest of either Paget or Sundance is diluted below 10%, the diluted party shall be entitled to a 2% Net Smelter Return royalty (“NSR”). Paget will have the right to purchase a 1.5% NSR for US$2 million.
David F. Volkert, President and CEO of Paget commented:
Following on the heels of the Ball Creek agreement with Blue Gold Mining in British Columbia (see press release dated 26 June 2012), the agreement on the San Ricardo Project underscores Paget’s strategy of geographic diversification through partners with established teams. Northern Sonora provides year-round work complementing our BC drilling and reconnaissance programs.
Click here to read the full press release.
