Silver Quest acquires 80 claims to expand the Boulevard property, Yukon
Silver Quest Resources (TSX-V:SQI) has entered into an agreement with The Yukon Cornelius Syndicate, a staking syndicate whose members are at arm's length to the company, to acquire a 100% interest in 80 quartz mineral claims (YCS Claims) located in the White Gold District, 135 km south of Dawson City, Yukon.
The acquired claims are contiguous with claims comprising the northwest portion of Silver Quest's Boulevard property and are adjacent to the northwestern end of Kaminak Gold Corporation's Coffee property. The YCS Claims cover approximately 1,670 hectares. Under the terms of the agreement, the company will acquire a 100% working interest in the YCS Claims by making a cash payment of $100,000 and issuing an aggregate of 300,000 common shares.
The syndicate has retained a 2% net smelter returns (NSR) royalty on the YCS Claims and has granted to the company a 2% NSR royalty on 80 syndicate claims immediately to the west of the YCS Claims. Each party will have the right to buy back one-half of the NSR royalty held by the other party for a cash payment of $1 million for a period of five years. The agreement is subject to regulatory approval. A 2011 exploration program on the YCS Claims is planned to include geological mapping and regional geochemical sampling.
Image from Silver Quest Resources Ltd.