Lion Copper and Gold Corp (TSX-V:LEO, OTCQB:LCGMF) has updated on its previously announced option deal to acquire the Chaco Bear and Ashton properties in British Columbia (BC), Canada, confirming the final terms.
The term of the agreement, struck with Houston Minerals, has been extended to 10 years from four previously, while the annual advance royalty payments, namely C$250,000 for Chaco Bear and C$150,000 for Ashton, are to be paid starting on year five through to year nine, rather than in the fourth and fifth year only.
All other terms disclosed in October last year remain the same, the firm noted.
The Chaco Bear asset sits in the Stikine Terrane of northern BC and hosted in similar rock formations as the Eskay Creek deposit, a precious metals volcanogenic massive sulphide (VMS) deposit in the Golden Triangle of BC that was in production between 1994 and 2008.
READ: Lion Copper and Gold announces definitive agreement to acquire Chaco Bear and Ashton properties in British Columbia
The Ashton project lies within the Spences Bridge Group, a narrow, northwest-trending belt of early cretaceous volcanic rocks covering nearly 3,200 square kilometers (sq km) from Princeton to Lillooet in BC that are highly prospective for epithermal style gold mineralization.
Both properties are subject to 2.5% net smelter returns royalty (NSR), which may be bought-down under various terms.
Lion Copper and Gold is a Canada-based company, which is also advancing its flagship MacArthur copper project in Mason Valley, Nevada.
Contact the writer at giles@proactiveinvestors.com