Bitterroot Resources Ltd. secured an option to acquire Ely Gold & Minerals Inc.'s North Hackberry claims in Arizona, which host the past-producing Silver King silver mine.
Under the agreement, Bitterroot will pay an aggregate US$150,000 and issue 600,000 shares to Ely Gold subsidiary Nevada Select Royalty Inc. over a three-year period to exercise the option and acquire the claims. The deal remains subject to exchange approval.
Nevada Select will also retain a 3% net smelter return royalty on precious metals, a 2% NSR on any other products sold from the property and a 0.5% NSR on any unpatented land acquired within a 2.66-mile radius of the claims. The agreement also includes advance royalty payments.
According to the company's Jan. 23 statement, Bitterroot also staked an additional 50 contiguous, unpatented lode claims around the Hackberry patented claims and the North Hackberry/Silver King unpatented claims.
After recently acquiring an option on the Hackberry silver property, the company now controls over 4.2 kilometers of prospective strike length along the Hackberry silver-mineralized structure in Mohave County.
Biterroot will undertake detailed geological mapping, structural analysis, sampling and geophysical surveys ahead of drill testing later in the year, with permitting for the unpatented claims to kick off immediately.