Precipitate Acquires 100% of Reef, Papua and Borneo Properties in Yukon
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 ( NSR ) 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.