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GPM Metals Inc. announces signing of Earn-in / Joint Venture Agreement with Rio Tinto Exploration Pty Limited for the Walker Gossan lead-zinc-silver project, Northern Territory, Australia
TORONTO , Jan. 27, 2014 /CNW/ - GPM Metals Inc. (TSXV:GPM) ("GPM") through its wholly ...
About this update from Gpm Metals Inc.
[{"type":"text","content":"\n\n\nTORONTO, Jan. 27, 2014 /CNW/ - GPM Metals Inc. (TSXV:GPM) (\"GPM\") through its wholly owned subsidiary DPG Resources Australia Pty Limited (\"DPG\") announces that it has entered into, an Earn-In/Joint Venture Agreement\n with Rio Tinto Exploration Pty Ltd, a wholly owned subsidiary of Rio Tinto\n Limited (\"Rio Tinto\") (NYSE:RIO); covering base metal exploration and development rights, in relation to\n certain granted exploration tenements and tenement applications in\n McArthur Basin Mining District, Northern Territory, Australia (The\n \"Walker Gossan project\").\n\n\nRio Tinto and GPM have entered into a definitive Two Stage Earn-In /\n Joint Venture Agreement granting GPM an initial 51% interest under\n certain conditions that include;\n\n\nStage One\n\n\n\n\n\n\n\n1.\n\n\n \n\n\nPayment of A$1,000,000.00 on signing\n\n\n\n\n2.\n\n\n \n\n\nMinimum expenditure of A$2,000,000 within 3 years of effective date\n\n\n\n\n3.\n\n\n \n\n\nCombined expenditures of A$20,000,000.00 over a 10 year period\n\n\n\n\n4.\n\n\n \n\n\nMilestone payments within the combined expenditures as follows:\n\n\n\n\n \n\n\n \n\n\n \n\n\n(i)\n\n\nA$100,000.00 upon the grant of licences to all of the properties;\n\n\n\n\n \n\n\n \n\n\n \n\n\n(ii) \n\n\nA$1,000,000.00 upon the completion of the first drill hole on the Walker\n Gossan\n\n\n\n\n \n\n\n \n\n\n \n\n\n(iii) \n\n\nA$4,000,000.00 upon the completion of a JORC Code Compliant resource\n study that shows an\nindicated status for minimum 20 million tons of greater than 8% combined\n lead and zinc, or lead,\nzinc and silver, within the licenced area or a Decision to Mine being\n made.\n\n\n\n\n\n\n\nStage Two\n\n\nGPM may increase its interest to 75% by completing a Feasibility Study\n within 3 years of completing Stage One.\n\n\nRio Tinto may elect to contribute pursuant to its participating share,\n not contribute and be diluted or convert its interest into a Net\n Smelter Return (2.5%) royalty.\n\n\nThere are rights of first refusal on purchase and sale of interest for\n both parties at fair market value.\n\n\nGPM will be responsible for all negotiations with the Northern Land\n Council for consent to issue the exploration licence applications and\n work programs to be conducted by GPM under its sole rights or as\n o...