Emergent Metals Options Mindora Property To Lahontan Gold

FULL DISCLOSURE: This is sponsored content for Emergent Metals.

Emergent Metals (TSXV: EMR) has elected to option out its Mindora Property in Nevada. The arrangement will see Lahontan Gold (TSXV: LG) gain the option to acquire up to a 100% interest in the property over a seven year term.

Defined as a “lease with option to purchase” arrangement, the transaction will see Lahontan pay US$1.8 million in the form of cash or shares for the property, in addition to spending US$1.4 million in work expenditures on the property.

To be renamed as West Santa Fe, the property, which is prospective for gold, silver, and base metals, is found 10 miles southwest of Lahontan’s Sante Fe property in Nevada, just outside of Hawthorne. The project, which consists of 147 unpatented claims, has seen upwards of 43,000 feet of drilling conducted on it historically.

Under the terms of the arrangement, $10,000 was paid upon signing of the term sheet, with a $20,000 payment due on the first anniversary. Payments increase incrementally, with a lump sum of $1.6 million due on the seventh anniversary of the transaction. Work commitments meanwhile amount to $150,000 in the first and second year, and increase incrementally thereafter.

“We believe putting Emergent’s Mindora (aka West Santa Fe) Property together with Lahontan’s Santa Fe Property is good for both companies to take advantage of potential synergies between the properties,” commented Emergent Metals CEO David Watkinson.

Emergent Metals last traded at $0.13 on the TSX Venture.

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