EMX Royalty (EMX) said Thursday it has optioned developed rights for its Trench Gold project property in Nevada to Canadian junior miner Ridgeline Mineral in exchange for cash and stock payments over the next five years along with other financial considerations.
The Trench Project is an oxide gold system in central Nevada that was previously explored by several groups during the 1990s using surface trenching and limited drilling. The property also contains widespread anomalous gold mineralization, with the exploration work by EMX identifying prospective targets that appear to have been largely overlooked by prior explorations, the company said.
Under terms of the companies' agreement, Ridgeline said it can acquire 100% of the project area by issuing 250,000 shares, making a $650,000 options payment and completing $500,000 of exploration activities over the next five years. EMX is also eligible for 3% net smelter returns, yearly royalty payments and selected milestone payments should Ridgeline exercise its option.
EMX shares were 1% lower in recent early trading.
Price: 2.40, Change: -0.01, Percent Change: -0.41
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