X-Cal options Nevada lease near Gold Spar

Toronto-listed X-Cal Resources is expected to acquire a privately owned 1,500-acre mineral lease next to its Gold Spar property on the Battle Mountain gold trend in Nevada.

To do so, it will pay the Marvel family US$172,500 and 155,000 X-Cal shares over the first five years of the deal, after which time the payments will be $50,000 per year until production. The Marvel family will retain a 5% net smelter return (NSR). X-Cal has the option to buy 2% of the 5% NSR for US$5 million.

BHP Minerals is drilling on the contiguous Gold Spar claims, under an exploration agreement with X-Cal. The Marvel lands are not part of this agreement and are controlled by X-Cal.