Toronto-listed X-Cal Resources and New York-listed Amax Gold have signed an “area agreement,” aimed at combining their adjacent properties in northern Nevada.
The combined land package stands at 10,000 acres contiguous to, and including, the Sleeper minesite and production facilities.
The agreement allows X-Cal to earn a half interest in Amax’s 6,000-acre property, as well as the Sleeper gold mine and production facilities, by funding $2 million of exploration work over the next two years and issuing 1 million of its common shares.
Once these obligations are met, a joint venture will be formed whereby the companies will share equally in costs and new gold production, as well as the combined land package. Amax will operate the Sleeper mine facility for the joint venture. X-Cal will continue testing gold targets, such as Area 3 and West Wood, on the combined lands.
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