Pilot GoldInc. said July 7 that it has signed an option agreement allowingLogan Resources Ltd.to earn up to 80% interest in up to four of the former's nine Great Basin portfolioproperties.
The properties are within the eastern Great Basin, ineastern Nevada and in western Utah, and include the Drum, Griffon, Antelope,Sandy, Easter, Brik, Stateline, Viper and Anchor gold properties.
Under the term of the agreement, Logan can earn an initial51% in four of the nine properties by incurring US$1 million in cumulativeexploration, holding and development costs within 12 months after the closingof the transaction, returning five of the nine properties to Pilot Gold within12 months post the closing date, including 100% of the 2017 holding costs paid,and maintaining the properties in good standing, making all lease payments,advanced royalty payments, and satisfying any minimum expenditure requirementon the properties.
Logan may earn an additional 19% interest in the fourselected properties by incurring an additional US$2 million in explorationexpenditures with 36 months of the closing date and issuing an additional1,000,000 shares to Pilot Gold on completion of the 70% earn-in requirement.
Logan can earn the final 10% in any of the selectedproperties by completing a prefeasibility study on the selected property.
Prior to the closing of the transaction, Logan will completea non-brokered private placement to raise funds for the initial exploration,holding and development of the properties. Upon closing of the financing, Loganwill issue 9.9% of its issued and outstanding shares to Pilot Gold.
Pilot Gold maintains its right of ownership interest inLogan provided that it owns at least 5% interest in the company.
Logan will also reimburse Pilot Gold for 100% of the 2016annual holding costs paid for by Pilot Gold.