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Eldorado Gold secures option to earn up to 75% stake in Sparton's Bruell project

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Eldorado Gold secures option to earn up to 75% stake in Sparton's Bruell project

Eldorado Gold Corp. secured an option from Sparton Resources Inc. to earn up to an initial 75% stake in the latter's Bruell gold project in Vauquelin Township, Quebec.

Pursuant to the option agreement, Eldorado will make all future cash payments and fund all the future expenditure requirements under the existing property option agreement with the original optionor signed in 2017.

Sparton said on Dec. 16 that it will also receive a cash payment of C$150,000 as partial compensation for past expenditures funded by the company pursuant to the existing option agreement.

If Eldorado makes all future cash payments and funds all the future expenditure requirements under the existing option agreement, then upon the exercise of the option, it will have the right to choose Sparton's participation in a new joint venture for further property development. In this case, Sparton will hold a 25% participating interest or buy out Sparton's 25% stake in the property for C$1.8 million.

If Eldorado chooses to buy out Sparton's 25% stake in the property, Sparton will have a 2% net smelter return royalty, upon a decision to put any project on the property into commercial production.

Eldorado may purchase 50% of the NSR any time for C$2.5 million.