AlicantoMinerals Ltd. said July 26 that it is acquiring the gold project fromSheik R Minerals Inc.,which is located less than 25 kilometers from the company's flagship gold project innorthwest Guyana.
Under the binding agreement, Alicanto will maintain an exclusiveoption to acquire and have operational access to the project for 36 monthsafter the satisfaction of due diligence.
The option will be maintained through the payment ofUS$25,000 upon satisfaction of due diligence, US$50,000 four months after, andUS$200,000 15 months after. Alicanto will also need to spend up to US$600,000on exploration and various land holding costs over a 24-month period.
Alicanto can also elect to complete the property'sacquisition at any time subsequent to the US$50,000 option payment by payingeither a lump sum of US$3.0 million or a lump sum payment of about US$1.4million and a 2% net smelter royalty.
The royalty may be repurchased over a 24-month period,either fully for US$3.0 million or half of it for US$2.0 million. Alicanto willretain a right of first offer for a further 36 months after the repurchaseperiod to acquire all or a specified part of the royalty.