Business
Majestic Options 8 Tenements in Western Australia
VANCOUVER, BC / ACCESSWIRE / December 18, 2019 / Majestic Gold Corp. ("Majestic" or the "Com...
About this update from Majestic Gold Corp.
[{"type":"text","content":"Majestic Options 8 Tenements in Western AustraliaVANCOUVER, BC / ACCESSWIRE / December 18, 2019 / Majestic Gold Corp. (\"Majestic\" or the \"Company\") (TSXV:MJS)(FSE:A0BK1D) is pleased to announce that it has entered into a letter agreement (the \"Agreement\") with Plutus Resources Pty. Ltd. (\"Plutus\"), a privately owned Australian company, whereby Majestic has been granted an option to acquire a 51% interest in eight tenements or any number of them, located in Western Australia. Terms of the option agreement are as follows:The tenements, collectively called the Fair Adelaide East project, are located approximately 60 kilometres northwest of Kalgoorlie, within the Eastern Goldfields Province of the Kalgoorlie Terrane. The Eastern Goldfields Province is host to some of the largest gold and nickel deposits in Australia including the Golden Mile (>70 Moz), Kanowna Belle (>5 Moz), Kundana (including Raleigh, Frogs Leg, Binduli; >5 Moz), Mt. Charlotte (>4 Moz) and New Celebration (>4 Moz).Majestic may acquire a 51% interest in the full eight tenements by paying Plutus A$30,000 on execution of the Agreement, a further A$30,000 on or before December 2020 and expending a total A$2,000,000 in exploration expenses on the properties during the ensuing two years ending December 15, 2023, provided that Majestic expends a minimum of A$500,000 on the properties during the year commencing December 15, 2021 and ending December 15, 2022.Alternatively Majestic may elect to acquire a 51% interest in fewer than the full eight tenements by making the two cash payments of A$30,000 and electing to expend a minimum of A$250,000 on any one or any number of tenements each and relinquishing the balance of the tenements back to Plutus, again provided Majestic expends a minimum of A$500,000 during the year commencing December 15, 2021 and ending December 15, 2022.Following Majestic having earned a 51% interest either in the full 8 Tenements or any fewer number Plutus and Majestic shall either negotiate a joint venture for the further development of the then jointly-owned properties or negotiate a sale of a 44% interest in the said properties by Plutus to Majestic.The eight contiguous tenements owned by Plutus comprise a total area of 1,322 hectares and are within the Eastern Goldfields Province of the Archaean Yilgarn Craton of Western Aust...