Para Resources Inc. agreed to purchase the Gold Road project in Arizona from Mojave Desert Minerals LLC for US$6.8 million, the company said Aug. 8.
The company will pay US$767,540 in cash and a promissory note for payment of US$1.0 million each year for the remaining US$6 million.
Para will also grant a 2.0% net smelter returns royalty over product mined at the Gold Road mine and a 1.0% net smelter returns royalty on product processed at the Gold Road mill.
Gold Road is the only fully permitted mine in the largest primary gold district of Arizona and has produced over 700,000 ounces of gold.
The project comprises a 500-tonne-per-day mill and cyanide leach operation, which has been on care and maintenance since June 2016 and is in good working order, the company said.
The company said restart of the mill will not require any major capital costs, but the mine will require dewatering below level 700 to allow access to level 820.
The agreement is expected to close by the middle of this month.