Colorado-based USMX (NASDAQ) recently granted Placer Dome (TSE) the right to explore and to purchase two separate blocks of ground in White Pine Cty., Nev.
The blocks make up a small portion of USMX’s property holdings in the Alligator Ridge area.
Block A, encompassing about 700 acres, can be purchased for US$5 million at any time before March 31, 1993. Placer committed to complete a minimum of US$500,000 in exploration before the end of 1992. The block includes the Top and East Top areas which USMX estimates contain in the order of 150,000 oz. of contained gold.
The second piece of ground, Block B, covers about 1,160 acres and is not known to contain any defined gold resources. If Placer elects to purchase Block A, it has 45 days to commit to spending US$500,000 on Block B if it wants an option to purchase. The cost to exercise Block B is US$6 million and expires on March 1, 1994.
Placer also agreed to buy one million shares of USMX at US$2.50 per share. If Placer does not exercise its option on Block A, USMX may be required to purchase the shares back at US$1.75 each.
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