Silver Standard, Regeena team up

Junior Regeena Resources (VSE) can earn a half interest in the Pine Grove property from Silver Standard (VSE).

Teck (TSE) spent US$2.2 million on the property, situated in Nevada, outlining a geologic resource of 2.5 million tons grading 0.061 oz. gold per ton in two zones.

Silver Standard reached an agreement with Teck to acquire Pine Grove, subject to a 5% net smelter return royalty retained by the vendors. In return, Silver Standard will issue Teck 75,000 shares on signing, 100,000 upon completion of a feasibility study and 125,000 at the point of production.

Regeena, in turn, can earn half of Silver Standard’s interest by spending $2.5 million over four years.

Exploration is expected to start shortly and will include infill drilling and further metallurgical testing.

Teck’s preliminary leach tests indicated recoveries in the 70-75% range.