Silver Standard Resources Inc. said Oct. 6 that it signed a four-year option agreement with Eagle Plains Resources Ltd. to acquire up to an 80% interest in the early-stage Fisher gold project in Saskatchewan.
Fisher hosts various gold occurrences along shear zones similar to Silver Standard's contiguous Seabee gold mine.
"We are excited to begin exploration of the Fisher project that doubles our land position near our existing high margin Seabee gold operation," Carl Edmunds, Silver Standard's chief geologist commented.
The company can earn a 60% interest in the project by spending US$4 million on exploration, including US$400,000 for the 2016 exploration program conducted by Eagle Plains.
Silver Standard will also make an initial US$100,000 cash payment at closing and annual cash payments of US$75,000 for each year of the option period.
Upon earning the 60% interest, the company will have a 90-day, one-time option to earn an additional 20% interest by making a cash payment of US$3 million, at which time an 80/20 joint venture will be formed to advance the property.
Eagle Plains will retain a 2.5% net smelter return, of which 1% can be purchased at any time for US$1 million. Eagle Plains will receive advance royalty payments of US$100,000 per year from the joint venture until the project achieves commercial production.