Former joint venture partner OceanaGold (OGC.TO) only returned the Highland property to Bravada Gold (BVA.V) in December after the company decided against proceeding with the JV, but Bravada has now already signed up a new partner for the project.
The Nevada based project generator has executed a letter of intent with Headwater Gold (private but pursuing a listing this quarter) whereby the latter can earn full ownership of the Highland project in a staged approach. In a first phase of the earn-in agreement, Headwater can earn an initial 51% interest by spending US$5M on exploration within a six year time frame. There will also be a token amount of cash and shares payable to Bravada Gold and advanced minimum royalty payments to the property vendors.
Upon completing this stage, Headwater can elect to complete the second batch of requirements to further increase its stake to 75%. It will have to complete an additional US$5M in exploration expenditures withing a four year period, and make a US$250,000 payment to Bravada Gold (which can be partly paid with shares). Once a 75/25 joint venture has been established, Headwater will be able to acquire the remaining 25% stake in the project on ‘commercially standard terms’ (no details were disclosed). Should Headwater not pursue full ownership, a 51/49 or 75/25 joint venture will be established depending on the requirements that have been met by Headwater Gold.
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