Silver Range Resources Ltd announced it has optioned its South Kitikmeot gold project in Nunavut to Australia’s Virdis Mining and Minerals Limited.
Virdis will pay Silver Range A$25,000 following the completion of an initial public offering on the Australian Stock Exchange, according to the binding term sheet.
The agreement stipulates that, as part of the first stage, Virdis may earn an initial 51% interest in the project by spending no less than A$1.5 million on exploration by the end of 2024.
READ: Silver Range Resources recovers high grade samples during exploration program at several Nevada properties
Virdis may then earn an additional 15% interest by spending another A$2 million by the end of December 2027, and a further 24% interest – for a total of 90% – if it completes a preliminary feasibility study on one of the properties located on South Kitikmeot by the end of 2037.
If Virdis decides to stop funding exploration in the first stage of the agreement, the two companies will form a joint venture and Virdis will forfeit its rights to any further interest in the project.
The agreement also includes an option for Virdis to buy out Silver Range’s interest in the project after the final stage.
Silver Range will also retain a 2% net smelter return royalty on the project and receive defined resource payments upon the definition of a JORC-compliant inferred resource.
South Kitikmeot is a collection of seven properties covering known gold occurrences along a 200 kilometre-long package of metasedimentary rocks which host the Lupin Mine and the Back River Project currently being advanced to production by Sabina Gold & Silver Ltd.
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