A wholly owned subsidiary of Toronto-listed International Gold Resources (IGR) has entered a lease and option agreement with Sunshine Mining and Refining (NYSE).
The agreement covers the exploration, development and possible sale of the subsidiary’s Ouray gold property in Colorado.
Sunshine must fulfil work commitments of US$3 million over a 5-year period. Should the property be brought into production, IGR’s subsidiary would receive annual advance royalties. Sunshine may also elect to buy the subsidiary’s interest for US$3 million prior to the first year’s anniversary and US$4 million prior to the second anniversary.
IGR’s decision to enter the transaction is consistent with its objective of focusing on projects outside North America. The company is also seeking similar agreements with other companies regarding disposition of its Idaho properties.
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