Executes Definitive Agreement For 75% Of Argentinian Project
Golden Arrow Resources Corporation (TSXV: GRG) has executed a definitive option agreement acquire a 75% undivided interest the Libanesa project Santa Cruz province, Argentina.
Libanesa is a 14,500-hectare silver-gold (lead) project located at the north eastern margin of the Deseado Massif Gold-Silver metallogenic province, approximately 70 km west from the port of Puerto Deseado, 40 km northwest of the Cerro Moro Mine operated by Yamana Gold and 100 km northeast of the Don Nicolas mine operated by Cerrado Gold.
Executive Chairman, President and CEO, Joseph Grosso, said Libanesa hosts several diversified geological, geochemical and geophysical supported targets and is permitted for drilling.
“Our team is eager to move forward on this highly prospective project and we are finalising the field programmes to quickly and efficiently advance the targets towards discovery,” Mr Grosso said.
Golden Arrow is planning to mobilise an exploration team to Santa Cruz this month. The initial plan is to complete additional surface work which may include geophysical surveying, with the intent of refining the targets for a drill program to start in the first quarter of 2022.
Summary of Terms
Mirasol Resources Ltd. (“Mirasol”) has granted Golden Arrow an option to earn a 75% interest in Libanesa over six years by:
– incurring exploration expenditures totalling US$4,000,000
o US$500,000 per year during the first 2 years; and
o US$750,000 per year thereafter.
– making cash payments to Mirasol totalling US$1 million
o US$100,000 to be paid on the 2nd, 3rd and 4th anniversaries;
o S$250,000 on the 5th anniversary; and
o US$450,000 on the 6th anniversary.
The initial US$500,000 in exploration expenditures is a firm commitment, but it may be incurred over 24 months instead of 12 months, if all permits required for exploration are not in place by the end of March 2022.
In addition, Golden Arrow is required to complete a minimum of 2,000m of drilling by the end of the second year. Golden Arrow will be the operator during the Option Period.
Upon completion of the Option, Mirasol and Golden Arrow will hold 25% and 75%, respectively, in a participating JV company holding Libanesa. If either party’s equity interest is diluted below 10%, it will convert to a 2% net smelter return royalty.
For further information please visit: https://goldenarrowresources.com/
