Directors of Atlas (NYSE) recently approved an agreement-in-principle with a unit of Nerco (TSE) whereby Atlas will acquire Nerco’s interest in about 751 unpatented mineral claims in Nevada and Oregon.
Of the total, 427 claims are situated in the Roberts Mountains area near Eureka, Nev., and adjacent to Atlas’ existing Gold Bar claim block. The remaining 324 claims consist of four blocks. Three are near Atlas’ Grassy Mountain gold project in Malheur Cty., Ore., while the remaining block is in southern Eureka Cty., Nev.
A small, near-surface geologic gold resource has already been outlined and will be further tested on the Roberts Mountain claims adjacent to Atlas’ Gold Pick deposit. The claims can be easily reached from existing haul roads and preliminary metallurgical testing shows compatibility with Atlas’ nearby Gold Bar processing mill.
Other areas of the claims are considered to have good potential for new discoveries. The terms of the agreement call for Atlas to issue 118,644 of its common shares to Nerco in exchange for the properties. In addition, Nerco would receive varying net smelter return royalties on production from the claims.
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