Tarsis Resources Ltd. (TSXV:TCC) signed a non-binding Letter of Intent to acquire a 100% interest in four gold/silver properties from Almaden Minerals Ltd (TSX:AMM,NYSE:AAU): two of the properties are located in Mexico, and two are located in Nevada. Under the Letter of Intent, Tarsis will acquire a 100% interest in the Yago, Gallo de Oro, Mezquites and San Pedro properties in Mexico, and the BP and BJS properties in Nevada for 4 million common shares and grant a 2% net smelter returns (NSR) royalty on any production from the projects.
As quoted in the press release:
Under the terms of the LOI, Tarsis will acquire a 100% interest in the following gold projects:
- Mexico: Yago, Gallo de Oro, Mezquites and San Pedro
- Nevada: BP, BJS
Tarsis will pay Almaden 4 million common shares and grant a 2% net smelter returns (NSR) royalty on any production from the projects.
In addition, areas of influence will be outlined in Nevada and Mexico, where Almaden will provide its proprietary data and concepts to Tarsis. In return, Tarsis will issue 200,000 shares to Almaden for each new property acquired within the area of influence. Tarsis will issue a further 800,000 shares to Almaden upon the first time disclosure of a mineral resource on each and any of the new properties.
Tarsis Resources Ltd. President and CEO, Marc Blythe said:
We are very pleased to acquire additional properties from Almaden and continue our relationship with them. We respect their ability to identify high-quality mineralizing systems and we look forward to advancing these properties using the prospect generator model.