ColombianMines Corp. said July 19 that it is purchasing from a private partythe Pamlico gold project in Nevada.
Pamlico consists of 116 unpatented lode mining claims where upto 4.6 meters at 239.15 g/t of gold where intersected in the past.
Under the purchase option agreement dated July 16, thecompany has the right to purchase an undivided full interest in the propertyeither by paying US$4 million in cash, including a 4% net smelter returnroyalty, within four years or paying US$7.5 million in cash, includingroyalties, so long as annual payments are equal to or exceed US$250,000.
Colombian Mines has paid US$50,000 upon signing and willmake a second payment of US$150,000 due within six months after signing.Payments of US$250,000 are due on each anniversary of the signing date untilthe total purchase price for either option has been paid.
The 4% royalty can be bought down to 1% by paying US$1million per 1%.