American Eagle Gold Corp. (TSXV: AE) announced this morning that it is looking to assume all rights and interest of the lease agreement with an option to purchase the Cerros Rojos property in Nevada. The transaction is reported to be for a consideration of $47 thousand in cash.
The company is seeking to assume the standing lease agreement between Standard Ore Corp.–as the lessee–and Rubicon Resources Inc. This includes an option to purchase a 100% interest on the property.
Upon completing the assignment of a new lessee, the company must maintain good standing by paying Rubicon Resources US$5,000 every six months for the first five years and US$10,000 on the subsequent semi-annual periods.
Still under the terms of the agreement, once the property commences commercial production, the company assumed the obligation to pay Rubicon Resources 3.0% net smelter return royalty.
The TSX Venture has provided conditional approval for the proposed transaction but the company must first secure approval from disinterested shareholders no later than April 30, 2022.
American Eagle Gold last traded at $0.16 on the TSX Venture.
Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.