Feb 21 2018
Evrim Resources Corp. (“Evrim” or the “Company”) is pleased to announce that it has signed a Letter of Intent (the “LOI”) with a subsidiary of Coeur Mining, Inc. (“Coeur”) on the Company’s Sarape epithermal gold-silver project in Sonora, Mexico.
Coeur may acquire up to an 80% interest in Sarape by spending US$16.5 million on exploration, making staged cash payments of US$2.4 million, and completing a National Instrument (“NI”) 43-101 compliant Feasibility Study on a minimum measured and indicated resource estimate of 1,000,000 ounces gold equivalent, within a ten-year period. Sarape is located in an emerging epithermal gold belt that hosts Premier Gold’s Mercedes Mine, First Majestic Silver’s Santa Elena Mine, and the Ermitaño gold discovery, a project under option to First Majestic Silver.
“We are excited to partner with Coeur on the Sarape project, and this transaction represents our seventh active exploration partnership” commented Evrim’s CEO, Paddy Nicol. “Like the Ermitaño project, Sarape exhibits large outcropping veins up to six kilometres in length and has never been drill tested. The exploration of Sarape to date has focused on the recognition of textures within the veins at surface which commonly occur above concealed high-grade ore-shoots.”
Transaction Terms
After a US$100,000 cash payment upon signing a Definitive Agreement and a first-year firm commitment of US$500,000 in exploration costs, Coeur can then earn an initial 51% (the “Initial Interest”) by completing the annual earn-in commitments and a NI 43-101 Preliminary Economic Analysis (“PEA”) on a minimum inferred resource of 1,000,000 ounces of gold equivalent. After earning the Initial Interest, Coeur can elect to earn an additional 39% interest (the “Second Interest”) by delivering a NI 43-101 compliant Feasibility Study on a minimum measured and indicated resource of 1,000,000 ounces of gold equivalent and making scheduled cash payments and minimum exploration expenditures up to the date of delivering the Feasibility Study. Once Coeur has earned the Second Interest, it will continue to pay to Evrim US$100,000 per year until mining and construction permits are received. Once the permits are received, Evrim may elect to participate in the joint venture with a 20% interest, or convert its 20% interest into a 3% net smelter royalty (“NSR”) of which one-third can be purchased for US$2.0 million.
If Coeur elects not to proceed with the Second Interest, it will convert its 51% interest to a 2% NSR of which one-half can be purchased by Evrim for US$2.0 million.
Evrim will be the operator for the project up to the completion of the PEA after which Coeur shall be the operator.