The first phase of drilling is under way at the Passagem mine property in Brazil.
Lysander Gold (VSE) can acquire an 80% indirect interest in the Passagem, one of Brazil’s oldest and longest-producing gold mines.
Past production, up to its closure in 1974, is estimated at 1.2-2 million oz. gold.
Lysander believes up to 2 million oz. remain within the on-strike and downdip projections.
Under a recent joint-venture agreement, Teck (TSE) is providing up to $8.8 million in funding to Lysander to explore the mine.
Teck purchased 2.1 million units of Lysander at 60 cents per unit. The unit consists of one share, as well as one 1-year A warrant and one 2-year B warrant exercisable at $1.20 and $2.40, respectively.
Teck now holds a back-in right to acquire an indirect half interest in Passagem from Lysander by exercising all the A and B warrants, funding all additional exploration expenditures, carrying out a bankable feasibility and arranging production financing.
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