Buyer of Newmont Lake property must have funds to support exploration program: Romios
Romios Gold Resources (TSXV: RG) announced that it has amended an agreement it signed with Crystal Lake Mining (TSXV: CLM) whereby Romios' Newmont Lake property has been optioned to CLM provided that the latter has funding in place to finance its commitment to spend $3 million on an agreed exploration program before September 20, 2019.
In a press release, Romios explained that the Definitive Agreement now calls for the confirmation of the funding to be made on or before March 29, 2019, in consideration for which the second and third cash option payments of $250,000 each due to Romios are now payable on or before March 29, 2019, with the final $250,000 option payment due within 90 days from March 29, 2019.
According to the Toronto-based miner, CLM is undertaking a private placement financing to fund the exploration program and satisfy the conditions.
The project combines the Newmont Lake, Dirk, and Andrei properties into a single copper-gold-silver metallogenic district.
The reformed deal also provides that CLM can earn a 100% working interest in Newmont Lake in consideration for, among other things, the issuance of 12 million common shares of CLM to Romios; the payment of an additional $1.75 million in cash option payments, with the remaining payments being $500,000 by March 29, 2019, $250,000 payable within 90 days of March 29, 2019 and a further $1 million payable upon CLM earning its 100% interest in Newmont Lake through the expenditure of $8 million on the property over a 3-year period.
The 58,000-hectare Newmont Lake project is located within British Columbia's Golden Triangle and situated 30 kilometres northwest of the Eskay Creek mine and 30 kilometres southeast of NovaGold/Teck Resources' Galore Creek project.
The project joins the pre-existing Newmont Lake, Dirk, and Andrei properties into a single copper-gold-silver metallogenic district.
Romios reports that geophysical and exploration drilling carried out in 2012 at the project's Northwest Zone yielded an inferred resource of 1,406,000 tonnes containing 200,000 ounces of gold at 4.43 g/t, 6,790,000 lbs. of copper at 0.22% and 291,000 ounces of silver at 6.4 g/t.