- Gunpoint Exploration (GUN) has signed an option-and-earn-in agreement with Newcrest Resources to explore Gunpoint’s Appaloosa property in Nevada, USA
- Appaloosa is an under-explored seven-kilometre-long mineralized structural zone situated within Gunpoint’s Talapoosa gold-silver project’s large land package
- The terms of the agreement give Newcrest the right to acquire, in multiple stages, up to a 75-per-cent interest in Appaloosa for cumulative exploration and development expenditures of US$35 million
- Gunpoint Exploration Ltd is engaged in the acquisition and exploration of precious metals located in the United States, Mexico, and Guatemala
- Gunpoint Exploration Ltd. was unchanged at C$0.45 at 11:14 AM ET
Gunpoint Exploration (GUN) has signed an option-and-earn-in agreement with Newcrest Resources to explore Gunpoint’s Appaloosa property in Nevada, USA.
Newcrest Resources is a wholly-owned subsidiary of Newcrest Mining Limited.
Appaloosa is an under-explored seven-kilometre-long mineralized structural zone situated within Gunpoint’s Talapoosa gold-silver project’s large land package in central Nevada.
Appaloosa hosts a broad and extensive hydrothermal system that is sub-parallel and 1 kilometre northeast of the Talapoosa trend.
The terms of the agreement give Newcrest the right to acquire, in multiple stages, up to a 75-per-cent interest in Appaloosa for cumulative exploration and development expenditures of US$35 million, cash payments totalling US$5 million to Gunpoint and completing a minimum indicated resource estimate of 1.0 million gold ounces.
Gunpoint will receive US$250,000 upon signing the agreement. Newcrest will have until January 21, 2023, to investigate and explore Appaloosa.
Newcrest may then elect to enter into the option phase and continue to explore Appaloosa by providing a US$750,000 cash payment to Gunpoint and undertaking US$2.0 million in exploration expenditures.
The earn-in phase consists of three stages whereby Newcrest can earn up to a 75-per-cent interest in Appaloosa over an eight-year period.
If Newcrest has earned a 75-per-cent interest in Appaloosa, Newcrest will have the option, within 120 days, to acquire Gunpoint’s remaining 25-per-cent interest for the greater of Fair Value and US$25.0 million.
Gunpoint Exploration Ltd is engaged in the acquisition and exploration of precious metals located in the United States, Mexico, and Guatemala.
Gunpoint Exploration Ltd. was unchanged at C$0.45 at 11:14 AM ET.