Pershing Gold Corp has closed the previously announced acquisition with Victoria Gold Corp to secure exclusive control of lands surrounding the Relief Canyon Mine in Nevada, US.
Under the terms of the agreement, the company paid $2m, ten million shares of Pershing Gold common stock, and five million two-year warrants exercisable for one share of Pershing Gold common stock at an exercise price of $0.60 per share to Victoria.
Pershing Gold will now have exclusive control of approximately 13,300 acres of unpatented mining claims and private lands surrounding at the Relief Canyon Mine.
Pershing Gold executive chairman, president and CEO Stephen D Alfers said the company intends to capitalise on the opportunity to explore and develop the entire Relief Canyon deposit.
"We are optimistic that we can upgrade and expand the known resource at this under-explored gold deposit," said Alfers.
The acquisition includes the interests of Victoria Resources (US), a subsidiary of Victoria Gold Corp, under Victoria's 2006 mineral lease and sublease with Newmont USA.
The mineral lease covers about 8,900 acres of Newmont mining claims and private mineral rights, and 62 mining claims staked by Victoria that are inside an area of interest (AOI) defined in the 2006 lease.
The acquisition also includes about 4,420 acres of unpatented mining claims wholly-owned by Victoria outside the AOI.
Until Pershing Gold delivers a positive feasibility study, and for a period of 90 days after, Newmont has the option at any time to become 51% manager of a joint venture with Pershing Gold limited to the AOI lands, upon payment to Pershing Gold of 250% of the expenditures on those lands since March 2006.