Radius Gold Inc. said March 21 that it secured a lease and an option to buy the Coyote gold property in Nevada from Geologic Services Inc.
It secured the lease for up to 15 years in exchange for a 2% to 3% net smelter return royalty, depending on the prevailing prices of gold, granted to the vendor.
To keep the lease in good standing, Radius has the right to make annual advance royalty payments to Geologic.
During the term of the lease, Radius can fully acquire the property by paying Geologic US$2.0 million.
Radius also agreed to reimburse Geologic for filing costs of a portion of the claims comprising the Coyote property.
The property is in northern Elko County on the eastern flank of the Independence Valley and consists of 58 unpatented mining claims.
Chalcedonic lenses and siliceous sinter deposits are localized along north-east trending normal faults that form the basin boundary and have been traced along strike on the property for 8,500 feet. The alteration extends into the hillsides for 2,000 feet.