Silverado, Amax Gold consider joint venture

To preserve its interest, Amax Gold would pay Silverado $280,000(US) on signing and spend $1 million within two years for ore definition on the property. Amax Gold would also have to pay Silverado $10 for each ounce of drill- proven or probable reserves blocked out to a maximum of $2 million. This, along with the $280,000, would be paid to one of Silverado’s creditors, Marubeni America, under a proposed standstill agreement.

Amax has told Silverado that the terms of the standstill agreement are “sufficient to permit us to move forward towards the conclusion of a joint venture.”

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