Toronto-based Sikaman Gold Resources (TSE) stands to gain $6.3 million if options on its wollastonite property in Nevada are exercised. As part of an agreement with Sikaman, Vancouver-based Floray Holdings has the option to purchase a 50% undivided interest in the Gilbert wollastonite property. To earn the interest, Floray will have to pay Sikaman $37,500 upon signing the option agreement, $1.96 million by Sept. 10, $2 million not more than 24 months after the project has been brought into commercial production, and a 2.5% net smelter return (NSR). Floray will have three years after production begins to buy back the NSR for $1 million.
The other 50% interest is assigned to Vancouver-based White Plains Resources under two separate option agreements, one of which was granted by the original owners. White Plains will pay Sikaman $475,000 this summer, and another $500,000 within the first nine months of commercial production for a 25% interest. White Plains must spend $750,000 on the property by July, 1991.
Sikaman discovered the deposit last year and has since identified extensive showings of high-grade material within a 6,800×850-ft. area. Preliminary testing indicates that the deposit would be amenable to open pit mining methods and that a marketable product could be produced, Sikaman said in a press release.
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