One new agreement and modification to an existing one are allowing Tri Origin Exploration (TOE-T) to explore for gold and base metals in Australia and central Nevada.
In the Cobar region of New South Wales, Tri Origin can earn 100% interests in several properties owned by Australian-listed Delta Gold. To do so, the Markham, Ont.-based company must spend $5 million on exploration over the next five years. Delta retains the right to participate at a 49% or 20% interest level, or back-in for 51% if certain conditions are met.
As part of the deal, Tri Origin has issued 2.5 million shares of its Australian subsidiary to Delta Gold for 10 cents per share. Delta can buy an additional 5 million shares at 10 cents per share and has the right to increase its interest to 12.5% within the next 21/2 years.
Proceeds will be used to fund exploration of the properties, each of which is considered prospective for gold and base metal mineralization.
Meanwhile, in central Nevada, Homestake Mining (HM-N) has agreed to explore the Lone Mountain gold property. Tri Origin had a previous agreement with Plutonic Resources of Australia, which was taken over by the major earlier this year.
Homestake holds a 60% interest in the property and intends to increase this by funding and managing a deep-drilling program in the fall. The company will test several targets generated from geophysical surveys and reverse-circulation drilling.
In addition, the revised agreement returns sole ownership of the La Plata gold property, also in Nevada, to Tri Origin.
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