- Gold Basin Resources Corp. (GXX) has signed an option agreement to consolidate its ground position at the Gold Basin Oxide Gold Project in Arizona
- The option agreement allows it to acquire 40 mining claims
- The first-year payment is US$25,000, increasing to US$350,000 by the seventh year
- The current owners will receive a net profits interest royalty of 3.5 per cent
- Historical drilling on the claims previously intercepted gold mineralization
- Gold Basin Resources Corp. (GXX) is down 2.44 per cent and is trading at $0.20 per share as of 3:42 p.m. ET
Gold Basin Resources (GXX) has signed a US$750,000 option agreement.
The option agreement allows Gold Basin to acquire 100 per cent interest in 40 mining claims located between the Cyclopic and Stealth deposits. This would consolidate the entire Gold Basin project area in Arizona.
The option can be exercised by paying the amount in varying annual payment instalments over nine years. The first-year payment is US$25,000, with increasing annual payments totalling US$350,000 by the seventh year. Gold Basin can exercise the option at any time during the period.
The current owners will receive a net profits interest royalty of 3.5 per cent, which will be paid on profits from production on the claims. Gold Basin has the right to purchase back 1.5 per cent of the royalty by paying $3 million to the royalty holders within 10 years of the grant.
The new area has the potential to host extensions for both the Cyclopic and Stealth mineralization. Historical drilling on the claims previously intercepted gold mineralization, most notably at the Red Cloud deposit.
Gold Basin has also staked an additional 74 new claims adjacent to its existing land package to secure exploration targets identified by survey data. The company’s total claim area will increase to 40 kilometres after securing these claims.
Gold Basin Resources Corp. (GXX) is down 2.44 per cent and is trading at $0.20 per share as of 3:42 p.m. ET.