Tempus Resources Ltd (ASX:TMR) (CVE:TMRR) (FRA:4W0) has exercised the option to acquire the Elizabeth Gold Project in Canada and has completed an addendum to the original Elizabeth option agreement.
This forms a key part of the company's Blackdome-Elizabeth Gold Project in British Columbia.
Managing director Brendan Borg said: “We are delighted to have completed the option to acquire the key claims in the Elizabeth sector of the Blackdome-Elizabeth Project.
“This results in 100% ownership of the Elizabeth claims and demonstrates the company’s commitment to the continued exploration and development of the Blackdome- Elizabeth Project.”
Acquisition terms
To finalise the acquisition, Tempus will make a payment of C$500,000, and issue 2,173,910 Tempus shares to the optionors by December 15, 2020, to purchase 1% of the Elizabeth Net Smelter Royalty.
A previously agreed advance royalty payment of C$30,000 will also be brought forward to December 15, 2020.
The Net Smelter Royalty over the central Elizabeth claims is 3%, while the remainder of the Blackdome-Elizabeth Project has zero Net Smelter Royalty.
Given the later than expected start to the 2020 drilling program at Elizabeth, the optionors have agreed to waive the requirement for the C$1 million minimum work expenditure commitment, to have been completed by December 31, 202,0 and this has become a post-completion obligation.
Once the payments are completed, Tempus will have met all conditions of the option agreement and will have earned a 100% right, title, and interest in and to the property, free and clear of all charges, encumbrances and claims - except for the ongoing yearly advance royalty payment obligations.
The Blackdome-Elizabeth Project covers a 350 square kilometre licence area.
Blackdome-Elizabeth Gold Project
Tempus is focused on rapidly verifying and expanding the historical high-grade mineral resource at the Blackdome-Elizabeth Project by drilling extensions to existing mineralisation and other high priority targets within the 350 square kilometre licence area, which remains relatively unexplored.
The company also intends to leverage the existing permitted mill, tailings dam and other infrastructure at Blackdome with the aim of recommencing production as the project proceeds.