Pegasus may earn its interest by spending $27.5 million(US) on evaluation, development and construction of new mines on the property by Aug 1, 1992. A minimum of $5 million must be spent by the end of the first year.
The joint venture agreement calls for Pegasus to spend an additional $1 million for each 100,000- oz increment in excess of one million recoverable ounces in the Carache Canyon, Lukas Canyon, Iron Vein and Cunningham deposits.
Pegasus will be the operator of the project, located 25 miles northeast of Albuquerque. The project comprises about 21,000 acres and includes the above deposits and other known gold occurrences. LAC reports the Lukas Canyon deposit may have the nearest term potential for commercial production.
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