Lake Shore Gold, Revolution Resources Amend Option Agreement for Mexican Properties
Lake Shore Gold Corp. (LSG.TO) today announced that it has amended the terms of its option agreement to sell up to 100% of its Universo and Montana de Oro land positions in Mexico to Revolution Resources Corp. (RV.TO). The revised terms will provide LSG with increased leverage to the success of Revolution's exploration efforts through additional equity ownership and a higher cash payment per ounce of gold or gold equivalent resource established on the land positions in return for a lower initial expenditure requirement.
A summary of the amendments include:
- Revolution will issue to LSG an additional 7,500,000 common shares over 4 years during the first option period to maintain the first option, subject to TSX acceptance
- The expenditures required to be incurred during the first option period to earn a 60% interest have been reduced to $15 million from $35 million; and
- The payment required from Revolution in order to exercise the second option to acquire the remaining 40% of either or both of the Universo and Montana de Oro land positions is increased to $30 per ounce of gold or gold equivalent resource in all categories from $20 per ounce.
Revolution is unchanged at 13 cents.
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