- Golden Valley (GZZ) has entered into an option agreement with Eldorado Gold (Québec) Inc., a wholly owned subsidiary of Eldorado Gold
- Under the terms of the agreement, Eldorado can earn up to an additional 50 per cent interest in several projects in Ontario and Quebec
- The new option agreement will supercede the existing JV between Golden Valley and Eldorado
- Eldorado may earn an additional 40 per cent stake in the properties by funding expenditures on the properties and making annual payments to Golden Valley
- Golden Valley Mines and Royalties is focused on project generation and continues to evaluate opportunities to enhance its mining exploration property portfolio
- Golden Valley Mines and Royalties Ltd. (GZZ) is up 0.86 per cent, trading at C$12.85 per share at 4 pm ET
Golden Valley (GZZ) has entered into an option agreement with Eldorado Gold (Québec) Inc., a wholly owned subsidiary of Eldorado Gold.
Under the terms of the agreement, Eldorado can earn up to an additional 50 per cent interest in the Claw Lake Gold Prospect, the Cook Lake Prospect, the Murdock Creek Prospect and the Perestroika Prospect.
Golden Valley and Eldorado are currently parties to a joint venture agreement pertaining to nine properties in which Golden Valley has a 70 per cent interest, and Eldorado has a 30 per cent interest.
Under the new agreement, the Existing JV will be terminated.
Eldorado may earn an additional 40 per cent stake in the properties by funding a minimum of $10,500,000 in expenditures on the properties over a five year period and making annual payments of $50,000 to Golden Valley.
In order to acquire an additional 10 per cent undivided interest in the properties, Eldorado will contribute all joint venture expenditures on behalf of the parties, and deliver a preliminary economic assessment (PEA) report to Golden Valley.
Golden Valley Mines and Royalties Ltd. is focused on enhancing its mining exploration property portfolio. Golden Valley is able to grow its current assets by way of partner-funded option/joint ventures and through its shareholdings in related-entities.
Golden Valley Mines and Royalties Ltd. (GZZ) is up 0.86 per cent, trading at C$12.85 per share at 4 pm ET.