The option agreement between Teeshin Resources (VSE) and Timmins Nickel (TSE) to place the Dome Mountain gold project into production has been finalized. Timmins can earn a 60% interest in the project near Smithers, B.C., by funding all capital and development costs required to bring the property into production at a minimum rate of 250 tons per day.
Timmins Nickel recently completed a $1-million private placement in Teeshin which will be used to retire project debt and for working capital purposes. Teeshin also committed to spend an additional $1 million on further exploration work over the next two years. Teeshin will receive 20% of the operation’s revenue from the first 324,000 tons of ore, and 40% thereafter, paying a proportionate share operating costs once commercial production is reached.
Reserves at Dome Mountain were last reported at 324,000 tons grading 0.36 oz. gold and 2.3 oz. silver per ton.
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