Precipitate Gold Corp. (TSX VENTURE:PRG) is pleased to announce it has reached an agreement with Bearing Resources Ltd. whereby Precipitate has agreed to acquire from Bearing a 100% interest in the Jay East mining claims in the Yukon Territory. In exchange for the 100% interest in the property, Precipitate will grant to Bearing a 2.0% net smelter returns royalty on the claims, of which Precipitate can, at any time, acquire one-half of the NSR for $1.0 million.
The purchase agreement replaces the July 29, 2011 Jay East Option Agreement whereby Precipitate had the right to acquire up to 70% of the property by making staged payments to Bearing totalling $780,000, incurring $2.0 million in exploration expenditures, and delivering to Bearing a feasibility study on the property.
Jeffrey Wilson, Precipitate’s President & CEO stated, “We are very pleased with this acquisition under the revised terms. Although we are not planning any exploration expenditures in this region in the near-term, the Jay East claims are central to the Company’s now 100% owned Reef Property in southeastern Yukon, so the completion of this acquisition consolidates our land package at Reef, while increasing exploration potential and improving access. Furthermore, with the exploration work done to date, the Reef Property claims are in good standing through to 2016-2017, allowing us to maintain these assets for several years at no cost. As with other recent option agreement revisions announced by the Company, this assists in securing the Company’s property portfolio while reducing future payments and expenditure commitments. We thank Bearing for their cooperation in revising the purchase terms.”
About Precipitate Gold:
Precipitate Gold Corp. is a mineral exploration company focused on exploring and advancing its mineral property interests in the Tireo Gold Trend of the Dominican Republic and Sonora State, Mexico. The Company also maintains assets in north British Columbia and the southeast Yukon Territory and is actively evaluating additional high-impact property acquisitions with the potential to expand the Company’s portfolio and increase shareholder value.
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