U.S. REPORT Koval farms out Montana prospect

Vancouver-based Barkhor Resources (VSE) will have the option to earn an interest in the Uncle Sam prospect near Sheridan, Mont., following an agreement with Calgary- based Koval Resources (ASE). By spending $250,000 on the property per quarter, Barkhor will have the option to earn a 50% interest in the prospect, subject to a 3% net smelter royalty. Any expenditures in excess of $2 million will be recovered from 75% of Koval’s share of net income from the mine.

This fall, about $150,000 will be spent on drilling and another $100,000 on underground development at Uncle Sam.

Until Barkhor has earned its interest, Koval will operate the project.