An option agreement to earn an 80% interest in the San Andres gold project in Honduras has been entered into by Arimetco International (TSE) with Fischer-Watt Gold (NASDAQ) of Reno, Nev.
To earn its interest, Arimetco says it has agreed to fund development work to the feasibility stage, whereupon Fischer-Watt will have the option to contribute its share of costs or revert to a 2.5% net smelter royalty. Planned for commencement this month is a 5,000-metre, 30-hole reverse circulation drilling program.
The property sits about 150 km southwest of San Pedro Sula. Currently, leaseholders are mining the property at a rate of 360 tonnes per day; buyout provisions have been negotiated with the leaseholders, Arimetco reports. Fischer-Watt’s option on the property calls for payments totalling US$30 million between 1994 and 2000 to fully acquire the project.
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