New Jersey Mining Signs Option to Acquire Golden Chest Mine.
16 October 2015 - US-based New Jersey Mining Company (OTCQB: NJMC) has signed an option to purchase agreement, giving it the right to acquire a 100% interest in the Golden Chest Mine, the company said.
NJMC formed Golden Chest LLC, which owns the Golden Chest Mine, with Marathon Gold Corp. (TSX: MOZ) in 2010 with an objective to explore and develop the property. NJMC is manager and 47.88-% owner of Golden Chest LLC. Marathon owns the remaining 52.12-%.
In order to acquire Marathon's interest, the agreement calls for NJMC to make a USD 10,000 down payment, to be followed by a USD 90,000 payment by 30 November 2015 to execute the option.
At that point, the agreement will convert into a purchase and sale agreement, requiring a final USD 100,000 payment within six months to complete the transaction.
Marathon will also retain a 2% net smelter return royalty on all gold production from the Golden Chest property, as currently held by Golden Chest LLC, and an adjacent area of interest.
New Jersey Mining is headquartered in north Idaho where it built and is the majority-owner and operator of a fully-permitted, recently upgraded, 360-ton per day flotation mill and concentrate leach plant.
The company is manager and 47.88-% owner of Golden Chest LLC, which owns the Golden Chest Mine, an historic lode gold producer on patented claims near Murray, Idaho.
Target: Golden Chest Mine
Buyer: New Jersey Mining Company
Deal size in USD: 200,000
Type: Corporate Acquisition
Buyer advisor: , ,
Comment: Option to purchase agreement
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|Publication:||M & A Navigator|
|Date:||Oct 16, 2015|
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