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Aura Announces Option Agreement to Acquire 100% Interest in Gold Chain Project, Mohave County, Arizona
Manotick, Ontario--(Newsfile Corp. - July 30, 2018) - Aura Silver Resources (TSXV: AUU) ("Aura...
About this update from West Point Gold Corp.
[{"type":"text","content":"Aura Announces Option Agreement to Acquire 100% Interest in Gold Chain Project, Mohave County, ArizonaManotick, Ontario--(Newsfile Corp. - July 30, 2018) - Aura Silver Resources (TSXV: AUU) (\"Aura\" or the \"Company\") announces that it has entered into a binding letter agreement for an option to acquire a 100% interest in the Gold Chain project located in Mohave County, Arizona, subject to TSX Venture Exchange approval. The project is comprised of 86 Bureau of Land Management lode mining claims in western Arizona where work conducted by prior operators has indicated the property is prospective for gold. Consideration payable to earn a 100% interest in the project is payable in annual installments over a four- year period from inception and total cash of US $1,500,000 and 3,750,000 common shares of the Company (see detail below). Upon TSX Venture Exchange approval, initial payments of US $30,000 and 750,000 common shares are payable.The Gold Chain project consists of several mineralized exposures over five kilometres, composed of epithermal-style gold mineralization. Some of these exposures were mined on a limited scale prior to 1940 and were explored by several companies during the 1980's. Mineralization occurs along a low-angle unconformity or detachment fault where mid-Tertiary volcanics rest directly on Precambrian rocks. The gold-bearing rock is characterized by quartz-calcite veinlets or stockwork in silicified and hematized volcanics in the hanging wall of the detachment fault. Several analogous deposits have been productive in the region. Historical records reveal that drilling identified oxidized conditions extending to at least 100 metres below the surface, a condition favorable for gold recovery by leaching. Going forward, Aura plans to commence historical data compilation and field studies necessary for the construction of geologic and geochemical models, required for the design of a drill program.Details with respect to the consideration payable for this acquisition are as follows:TimingCash payments (US dollars)Common share paymentsUpon acceptance$30,000750,000First anniversary30,000750,000Second anniversary50,000750,000Third anniversary100,000750,000Fourth anniversary1,290,000750,000Totals$1,500,0003,750,000The vendors of the property hold a 2% net smelter royalty (\"NSR\") on gold and silver. The Company has the...