GOLD AND PRECIOUS METALS — Fremont to acquire Chilean property

Fremont Gold (fgld-o) has renegotiated the terms of its acquisition of the Laja gold property in central Chile’s Andacollo district.

The terms, agreed to by Fremont and the local property owners in a letter of intent, have Fremont earning a 100% interest in Laja by paying the owners US$2.5 million over four and a half years and completing a feasibility study. The owners retain a royalty, the amount of which will be calculated on a sliding scale based on the price of gold.

The 250-ha Laja property abuts the northern boundary of the Andacollo gold mine property of Dayton Mining. The Andacollo mine holds combined gold reserves and resources of about 3 million oz.

Based on published geological reports and the field observations of Fremont staff, a series of north-to-northwesterly-striking mineralized structures appears to extend from the Andacollo property on to the Laja property.

Fremont plans to commence drilling at Laja this summer.

Meanwhile, Fremont has entered into an agreement to sell its interest in the Cenizas gold project in northern Chile for US$200,000. Fremont will retain a 3% net smelter return royalty, which will drop to 1% after US$3 million in royalties has been paid, or upon receiving a lump-sum payment of US$1.5 million.