Mountain- West Resources says the 1986 agreement on its Elkhorn property with Homestake Mining has been restructured. The new agreement will allow Homestake to earn a 50% interest by spending $3 million(US) on the property within four years. It must also make option payments to Mountain-West of $100,000 on signing and the same amount annually for the next four years.
Homestake can increase its stake to 55% by delivering a formal feasibility study and it can buy down Mountain-West under certain conditions thereafter. Mountain-West also has the option to bring the property into production.
Homestake is planning a major drilling program on the property this year, primarily within the breccia pipes and also to depth.
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