Precipitate Gold Corporation (PRG.V) reports that further to its
Fireside Property Option Agreement with Strategic Metals Ltd.
(SMD.V), signed April 14, 2011, a Replacement Agreement has been
executed between the companies whereby, in consideration of
previously completed cash payments, share issuances, and incurred
expenditures, Precipitate and Strategic have agreed that:
- Precipitate is now deemed to have fully exercised its option
and completed the acquisition of a 100% interest in the Reef,
Papua, and Borneo properties in southeast Yukon, subject to a 2%
net smelter return (
) to Strategic;
- Precipitate is deemed to have terminated the option on 14
remaining Fireside properties, with Strategic retaining its 100%
interest in those claims; and
- No further payments or expenditures are required by
Precipitate, with all considerations made to date constituting
completion of the Replacement Option.
By terminating the original Fireside Agreement, Precipitate has
eliminated a $1.3 million expenditure commitment previously
required for Precipitate to earn a 100% interest in any of the
Fireside projects. Precipitate continues to hold four other wholly
owned projects in the region, acquired by staking.
Jeff Wilson, Precipitate's President and CEO commented "We're
pleased with the completion of the Replacement Agreement as it
concludes the acquisition of the three projects we most coveted in
the Fireside agreement. By eliminating the remaining $1.3 million
expenditure, we can allocate our exploration expenditures
efficiently in continuing our activities in the Tireo belt in the
Dominican Republic and Sonora State, Mexico. Strategic has been a
great partner, providing support and vast experience in the Yukon
and northern British Columbia. Strategic continues to be a valued
associate and shareholder of Precipitate."
SMD is down 1 cent to 51 cents.
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