An option to acquire 56 claims surrounding the old No. 5 and Empress mine workings at the Britiannia Mines property in British Columbia has been negotiated with the property owner, Pure Gold Resources (TSE) reports.
The agreement, with Copper Beach Estates Ltd., requires the approval of the Toronto Stock Exchange and Pure Gold’s board of directors. The agreement is subject to a 20% net profits interest.
To exercise the option, Pure Gold must make three cash payments totalling $200,000 and spend at least $150,000 on exploration work in each year that that option is in effect.
Half of the net profits interest can be purchased by Pure Gold through the payment of the equivalent of $70,000 in cash or shares upon regulatory approval and a further $430,000 in cash or shares if the company elects to proceed with development work in 1993.
The property is known to host two target areas, a near-surface gold oxide zone and an underlying gold-copper sulphide zone, Pure Gold says. A limited drill program tested the oxide zone in 1990.
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