Bravada GoldCorp. entered a definitive agreement with granting the latteran option to earn into Bravada's interest in the past producing gold property in Nevada.
According to a July 13 release, Bravada holds the interestin the property through its wholly owned subsidiary, , pursuant to anagreement with the underlying owner of the property.
Coeur may earn from 49% up to 100% interest in the Quitoproperty over a five-year period by funding Bravada's earn-in work commitmentsand paying an option purchase price of US$2 million to Bravada.
Bravada will retain a 2% net smelter returns royalty onCoeur's percentage of production from the property.
Following the signing of a in July 2015, thecompanies have conducted field mapping, revision of the 3D geologic model ofthe property, and permitting.
Additionally, the companies are preparing for a 1,200-metercore drilling program at the Russ target on the property, with drilling tocommence by the end of July. Two other targets, Q4 and Aspen, are beingpermitted for core drilling in the summer of 2017.
The underlying owner of the property has agreed to modifyprovisions of the underlying agreement with Bravada to match the terms ofoption signed with Coeur.
Coeur's option with Bravada would allow it to acquirewhichever level of interest Bravada has earned after the underlying owner makesits one-time election.