FMC to explore Getchell’s Rock Creek property

The 17,900-acre precious metal property is in the southern end of the “Getchell Trend,” considered highly prospective for sediment- hosted epithermal gold deposits.

Under the recent agreement, FMC can earn a 51% interest in the Rock Creek gold property by spending a total of $2.29 million(US) on exploration over a 4-year period. During the first two years, FMC must spend $458,000 per year, followed by $658,000 in the third year and $716,000 in the fourth year.

Upon completion of the above expenditures, a joint venture will be formed among the three partners, with Getchell retaining at least a 24.5% interest in the property.

The agreement also involves the company’s previous joint venture partner on the project, Total Energold. Getchell has re-negotiated its previous agreement with Total Energold so that each of the two companies could eventually end up with a 24.5% interest in the property.

Getchell will issue to Total Energold 233,333 shares and 200,000 share purchase warrants as well as half of its interest in the property for total consideration of $650,000. The company will receive $350,000 upon receipt of regulatory approval for the deal, and the balance of $300,000 upon exercise of the warrants. The warrants are exercisable over a 1-year period at a price of $1.50. If the warrants are not exercised by Total Energold, FMC can purchase the other company’s one- quarter interest in the property by making the $300,000 payment.

]]>