- Altan Rio Minerals (AMO) has completed its option for a 90 per cent interest in the E77/2961 tenement in Western Australia for $500,000
- The company paid $250,000 in cash plus $250,000 in common shares to exercise its option right
- Altan Rio Minerals will also free-carry the license vendor at 10 per cent through to a decision to mine
- If a decision to mine gets made, then the vendor will have 30 days to contribute or dilute to 1.50 per cent gross smelter royalty
- Altan Rio Minerals (AMO) is unchanged trading at $0.09 per share as of 1:20 p.m. EST
Altan Rio Minerals (AMO) has completed its option for a 90 per cent interest in the E77/2961 tenement in Western Australia for $500,000.
The company paid $250,000 in cash plus $250,000 in common shares in order to exercise its option right. Additionally, Altan Rio Minerals will free-carry the license vendor at 10 per cent through to a decision to mine.
Mining work to be determined
If a decision to mine is made, then the vendor will have 30 days to contribute or dilute to 1.50 per cent gross smelter royalty. Both parties have a mutual 30-day right to purchase each other’s interest if they are prepared to accept an offer for their rights, title, and interest on arm’s length terms.
As a part of the transaction, Altan Rio Minerals stated it is required to maintain the tenement and keep it in good standing during the option period or prior to notifying the vendor of its intention not to exercise the option, whichever comes first.
According to the company, this large exploration license application is located between Southern Cross and Bullfinch areas in Western Australia. These areas are known to be prospective for gold, nickel, and other valuable commodities.
The tenement has seen minimal continuous exploration for gold or nickel but does have evidence of historic small gold mining activities. Also, the tenement area shows signs of nickel sulphides in host rocks which were previously identified.
Altan Rio Minerals stated a surface mapping and sampling program on the tenement is planned to begin early next month. It expects to complete this within its second fiscal quarter.
Altan Rio Minerals (AMO) is unchanged, trading at $0.09 per share as of 1:20 p.m. EST.