Canadian Mining Company has finalised and entered into an option and joint venture agreement with Aureus Resources for the Bullard Pass Gold project in Arizona, US.
The option agreement enables Aureus Resources to earn up to 60% in the Bullard Pass Gold Project by issuing Canadian Mining 2.4 million common shares in its capital stock and incurring a total of $1.25m in exploration expenditures.
Aureus can then form a 60/40 joint venture with Canadian Mining to further explore and develop the gold project or to acquire the remaining 40% stake in Canadian Mining by making a payment of $750,000.
Canadian Mining Company president and CEO Ray Paquette said: "This agreement will enable Canadian Mining to free up capital and focus our full attention on the further development of the Sun Group Zeolite Project in British Columbia, which is presently garnering worldwide attention."
According to the agreement, Aureus Resources, having earned a 100% undivided interest in the Bullard Pass Gold Project, will be subject to a 2% net smelter return royalty on due to Canadian Mining.
The NSR may be acquired by Aureus in 1% increments for the amount of $1 million per each 1% increment. Aureus, through to the joint venture, will pay maintenance fees and assume all land payments to the Bureau of Land Management.