- Austral Gold Limited’s (AGLD) subsidiary (AGASA) accepts an offer for a joint venture contract with Mexplort Perforaciones Mineras S.A.
- The parties will identify and develop new precious metal projects located in the Indio belt in Argentina
- AGASA has an option to aqcuire a 50 per cent interest in the Jaguelito Project which has gold and silver targets
- Austral Gold Limited’s (AGLD) is up 7.143 per cent trading at $0.075 per share as of 3:04 p.m. EST
Austral Gold Limited’s (AGLD) subsidiary, Austral Gold Argentina SA (AGASA), accepts an offer for a joint venture contract with Mexplort Perforaciones Mineras S.A.
The parties will identify and develop new precious metal projects located in the Indio belt in the province of San Juan, Argentina.
AGASA has an option to acquire a 50 per cent interest in the Jaguelito Project as a part of the agreement.
Primary exploration targets on Jaguelito are gold, silver, and other precious metals.
Both parties agree to create a new joint venture company within 60 days of signing the offer letter.
AGASA can acquire a 50 per cent interest in the Jaguelito project for the payment of US$2 million in exploration expenditures within two years from approval, including drilling a minimum of 5,000 metres.
AGASA can also acquire a 50 per cent interest with a US$3 million payment to Mexplort if its board approves the construction of the project based on a feasibility study.
After completion of the first stage, AGASA has 30 days to notify Mexplort of it moving to the second stage.
This allows AGASA to maintain the exclusive right to explore Jaguelito and it will be obligated to pay the additional US$2 million.
If the second stage is completed and the option is exercised, Mexplort will transfer 100 per cent of the property’s mining rights to the joint venture company and AGASA must transfer all mining information obtained as well.
If AGASA does not complete the first stage, it will owe Mexplort any amount due under the US$2 million of exploration expenses committed, including the drilling.
If AGASA notifies Mexplort of its intention to pursue the Second Stage but does not complete it, AGASA will owe Mexplort any pending balance from the US$2 million committed for the Second Stage.
Austral Gold Limited’s (AGLD) is up 7.143 per cent trading at $0.075 per share as of 3:04 p.m. EST.