NeoTerrex Minerals (NTX.V)on Wednesday said it entered into a letter of intent (LOI) and term sheet with Fury Gold Mines (FURY.TO) to negotiate and execute a definitive option agreement to grant NeoTerrex the option to buy up to a 100% interest in Fury's Copper-Gold-Silver-Tungsten Reservoir project in Quebec.
After the company earns a 100% interest in the 116-claim Reservoir project, Fury will retain a 2% net smelter returns royalty (NSR), of which NeoTerrex will have the right to buy one-half, representing a 1% NSR, for C$1.0 million at any time until commercial mine production, it said. NeoTerrex will act as operator throughout the earn-in period and thereafter for so long as it maintains a majority interest, it added.
The company plans to pay through staged exploration expenditures and cash payments to buy 100% of the Reservoir project.
Shares of NeoTerrex were last seen up 13% at C$0.125 on the TSX Venture Exchange. Fury Gold Mines shares were last seen up 7.3% at C$0.88 on the Toronto Stock Exchange.
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