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Emgold Mining enters option for up to 91% stake in Casa South gold property

Emgold Mining Corp. on March 20 closed the acquisition of an option for up to a 91% interest in the Casa South gold property in Quebec, announced in December 2018.

The company initiated the four-year option period by completing the first C$75,000 option payment to the vendors out of the total payments of C$375,000.

Concurrently, the company issued 807,692 shares worth about C$52,500 to the vendors, who are to be allocated a total number of shares equal to 9% of the company's share capital.

Emgold will also have to spend C$600,000 on exploration in the first year of the option period and an additional C$1 million during the course of the definitive agreement.

Additionally, the company will grant a 1.5% net smelter royalty to the vendors, of which a third can be repurchased for C$500,000.

The Casa South property comprises 180 active mining titles covering 10,061 hectares and extends immediately south of Hecla Mining Co.'s Casa Berardi mine operation.