Emgold Mining Corp. signed a letter of intent with MSM Resource LLC to lease and explore the Marietta gold property in Nevada for five years.
The company must make US$500,000 in lease payments. It was also granted a four-year option to buy the whole property for US$4 million.
MSM will retain a 1% net smelter royalty, which Emgold can repurchase for US$1 million within 24 months after the property reaches commercial production.
During the lease and option periods, Emgold is required to settle all claim fees and taxes required to keep the property's claims in good standing. The company has no exploration work commitments.
Emgold said Dec. 12 that it will focus on the 13 patented claims known as the Marietta mines area, as the property's 12 unpatented claims are currently leased to a third party, which also has the option to purchase them.
Emgold's exploration plans include geologic and geological sampling, additional geophysics with a 3D modelling of potential porphyry at depth, and drilling to test hydrothermal and porphyry targets.