Golden Predator Acquires Mineral Hill Alkalic Gold Property, Crook County, Wyomingadmin
Wednesday, August 12th 2009
Golden Predator Royalty and Development Corp. announces that it has signed a letter agreement with Bronco Creek Exploration, Inc. and Mineral Hill, LP pursuant to which the Company will lease the Mineral Hill Property, consisting of 20 patented and 69 unpatented mining claims located in the Mineral Hill District, Crook County, Wyoming.
As consideration for the Lease the Company will pay a sliding scale net smelter returns royalty on gold production, ranging from 2.5% where gold is less than $400/oz to 6% where gold is greater than $1,300/oz, and a fixed 3% nsr royalty on minerals other than gold. Following a bankable feasibility study the Company may repurchase 0.5% of the royalty for $500,000 and an additional 1% for USD $1,500,000 per 0.5%. In addition, the Company is obligated to make advance royalty payments totaling $345,000 over the next four years and $150,000 each year thereafter, issue a total of 500,000 shares over the next four years, and incur exploration expenditures totaling $1,550,000 by December 31, 2012 and an additional $750,000 per year thereafter until a bankable feasibility study is completed. Payments of $75,000, the issuance of 50,000 shares and exploration expenditures of $300,000 by December 31, 2010 are firm commitments of the Company. The agreement is subject to several conditions, including a satisfactory due diligence review by Golden Predator and all required regulatory approvals.