Ridgeline Minerals (TSX-V:RDG, OTCQB:RDGMF) Corp announced that it has inked a deal to acquire 100% interest in the Robber Gulch gold project in Idaho from EMX Royalty Corporation.
The earn-in option agreement will give Vancouver-based Ridgeline ownership of the shallow oxide, Carlin-type gold discovery.
Ridgeline will also gain a geologic database with technical highlights, the company said.
As per the term sheet, Ridgeline may earn a 100% interest in Robber Gulch by making an initial execution payment of US$50,000 and all option payments totaling US$750,000 over a five-year period. Up to $350,000 may be payable in Ridgeline shares.
READ: Ridgeline Minerals poised to advance Carlin-East and Bell Creek projects in Nevada next year as it reports final results for Crash Zone drill program
Ridgeline will issue 150,000 shares to EMX by the second anniversary of the agreement and complete $650,000 in exploration expenditures before the fifth anniversary of the agreement.
Once the exploration earn-in option closes, EMX will retain a 3.25% net smelter return (NSR) royalty on the project. Ridgeline can reduce this to 2.25% by completing an initial 0.5% royalty buyback in exchange for $1.5 million by the third anniversary of the option agreement and pay another $2 million to EMX for the remaining 0.5% thereafter.
Ridgeline will make annual advance royalty payments of $50,000 that increase to $75,000 upon completion of a Preliminary Economic Assessment or Order of Magnitude Study with payments to cease upon commencement of commercial production.
The firm will also make milestone payments in cash or shares consisting of $250,000 upon completion of a Preliminary Economic Assessment, $500,000 upon completion of the earlier of a Prefeasibility or Feasibility Study, and $1,000,000 upon a positive development decision.
In a statement, Ridgeline CEO Chad Peters called the agreement “a very exciting acquisition” for the company.
"Robber Gulch is a perfect complement to our exploration portfolio and aligns with the company's strategy of acquiring and systematically advancing underexplored projects in known gold districts, an approach that led to a recent earn-in exploration agreement with Nevada Gold Mines at our Swift project,” Peters said.
“Robber Gulch is a drill-ready, shallow-oxide gold discovery in a rapidly emerging gold district in southern Idaho and we look forward to getting boots-on-the-ground as soon as possible."
Ridgeline has a 163-square metre exploration portfolio across five projects in Nevada and Idaho.
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