Atlantic Gold Corp.said April 28 that its DDV Gold Ltd. unit has secured an option to purchase partnerMoose River Resources Inc.'sstake in the Touquoygold deposit in Nova Scotia.
The subsidiary will acquire the project stake at fair marketvalue after 18 months of commercial production, when 3,000,000 tonnes of Touquoyore has been processed, or the 30-day average spot price of gold is at least C$1,400per ounce.
If the fair market value is acceptable to DDV, then Moose Riverwill be obliged to complete the transaction.
"If DDV elects not to proceed with the acquisition, costsof the valuation will be paid by DDV and the option will remain open to exerciseby DDV at its future election under the same process," the company said.
A C$500,000 option fee is payable at the first drawdown of seniorproject debt facilitiesand a C$500,000 exercise fee is payable only if DDV opts to proceed after the valuation.
The company noted that the option terms have been provided asan amendment and restatement of a prior agreement with Moose River as requestedby the debt finance providers for the Moose River Consolidated project, includingprovisions for transition to processing of other deposits wholly owned by Atlantic.
These amendments are conditional upon Atlantic finalizing projectfinancing prior to Sept. 30.