Yale Options Out the Urique Project to American Sierraadmin
Yale Resources Ltd. report that it has signed a definitive agreement with American Sierra Gold Corp., a private U.S. company, for the option of Yale’s wholly owned Urique Project located in southwestern Chihuahua State, Mexico.
The option will allow American Sierra to earn up to a 100% interest in the Urique Project. American Sierra can initially earn 90% by paying Yale US$1,050,000, incurring US$ 2,600,000 in exploration expenditures and paying an additional US$360,000 to Yale in either cash or stock over four years. To earn an additional 10% interest, American Sierra will be required to issue Yale 500,000 shares, complete sufficient drilling to support a resource estimation within 3 years and thereafter pay Yale US$0.75 per every equivalent ounce of silver within the measured and indicated categories. If American Sierra chooses not to complete Stage two, Yale will retain a 10% ownership in the Urique Project as a carried – non-participating – interest. Yale has received US$ 300,000 from American Sierra.
Yale will act as the operator for the project during at least the first year of the agreement.
“Yale now has 3 of its 5 projects optioned out to third parties. This is part of the Company’s business model of being a project generator in Mexico. By optioning out projects, Yale mitigates many of the risks inherent to the exploration industry. It also lowers costs and generates income from the projects, which, in turn, reduces the need to finance. Yale receives income via payments as well as being the operator and has upside via owning shares in its partners”, states Ian Foreman, P.Geo., President of Yale Resources.