-- A2Gold (AUAU.V) said Monday it has entered into a binding letter of intent (LOI) to acquire a 100% interest in 26 lode mining claims from Lodestar Management Group located within its Taylor project in White Pine County, Nevada.
This acquisition consolidates a key portion of the district and eliminates internal land fragmentation, allowing A2Gold to advance Taylor as a unified, district-scale project, a statement said.
A2Gold will pay US$225,000 in cash and 316,377 shares for the claims. The vendors will retain a 1.0% net smelter return (NSR) royalty on the claim, half of which may be bought back for US$500,000 within three years of closing.
"These claims sit in a highly prospective portion of the district and are directly relevant to the continued expansion of our silver resource, as well as our broader gold and antimony exploration strategy. Importantly, this transaction removes internal land constraints and allows us to advance Taylor as a cohesive, district-scale system. With silver, gold, and antimony mineralization occurring across the project, we believe Taylor has the potential to emerge as a significant multi-metal system in Nevada," said Peter Gianulis, chief executive.
A2Gold shares were last seen unchanged at $0.89, on the TSX Venture Exchange.