Evrim Resources has signed a three-year exploration alliance agreement with Meridian Gold , a wholly-owned subsidiary of Yamana Gold.
The Alliance allows Evrim royalty free access to Yamana’s dataset in the western United States for gold and base metal project generation.
The dataset contains information from more than 7,000 locations ranging from early stage exploration to advanced projects and represents approximately 30 years of exploration work completed by Meridian and predecessor FMC Gold Co. The dataset covers a large portion of the western United States with a particular focus on Nevada.
Evrim’s president and CEO Paddy Nicol said: “The dataset consists of digital and non-digital data with proprietary non-public information that has not been reviewed for many years, making it a unique and valuable asset.
“Western United States represents a new mining and exploration jurisdiction for Evrim and reinforces our strategy to gain competitive advantages in areas in which we operate. We look forward to applying our skillset to identify new opportunities with this under-utilized dataset.”
During the alliance period, Evrim will compile a fully digital and comprehensive dataset to generate new targets and ideas within the designated area. Should Evrim acquire a project within the designated area, Yamana will have the exclusive right for 60 days to enter into an option agreement to earn a 75% interest on terms as follows:
- Within the first two years, Yamana will fund [at least] US$1,000,000 for initial exploration expenditures, including any acquisition or land staking costs;
- Solely fund additional exploration expenditures between years 3 and 10, or until such time as Yamana has defined a NI 43-101 compliant pre-feasibility study on a minimum 1 million ounce gold equivalent resource;
- Make a cash payment of US$150,000 upon signing the option agreement and additional payments of US$100,000 on the first, second and third anniversaries;
- Upon Yamana earning its interest and the formation of a joint venture, Yamana and Evrim will jointly fund programs on a respective 75%/25% basis;
- Should Evrim’s interest in a project fall below 10%, its interest will convert to a 2.5% net smelter royalty (“NSR”) of which 1.25% NSR can be purchased by Yamana prior to production for US$5 million; and
- Evrim will be operator during the first US$10 million of exploration expenditures.
Source: Company Press Release