With the purchase of two gold tenements in Burkina Faso, West Africa, Canyon Resources (ASX: CAY) has extended its holding to more than 1,100km2.
The tenements are contiguous to Canyon’s wholly owned Tarparko North Project.
Consideration comprises US$50,000 and 750,000 shares over a three year period, for 100% ownership of two tenements, Tigou and Tyekobo.
In addition, Canyon must meet minimum expenditure commitments on the two tenements of US$800,000 over three years, and providing the vendor a 2% net smelter return royalty, which can be bought out by Canyon for US$2,000,000 per tenement if required at a later date.
An augur drilling program will commence on the new tenements in early 2011.