Evrim Resources Corp. said June 8 that it granted an option for Harvest Gold Corp. to earn up to an 80% in the Cerro Cascaron gold-silver project in Chihuahua, Mexico.
Harvest can earn an initial 70% interest by incurring C$6 million in exploration expenditures, paying C$900,000 and 2 million shares over a period of four years.
Upon earning the initial interest, Harvest will have 90 days to elect to earn an additional 10% interest by making either a C$200,000 cash payment or the issuance of 200,000 shares at Evrim's discretion and fund a feasibility study over a five-year period.
If Evrim's interest in the project is diluted to 10% or less, its interest will convert into a 2% net smelter royalty. Evrim will retain the right to purchase 1 percentage point of a pre-existing 2% NSR from a property vendor for US$2.5 million.