Rupert Resources Signs 6 Month Option Agreement to Acquire ...
2016-03-17 11:58 ET - News Release
Mr. Martin Kostuik reports
RUPERT RESOURCES SIGNS 6 MONTH OPTION AGREEMENT TO ACQUIRE PAHTAVAARA GOLD MINE IN CENTRAL LAPLAND, FINLAND, AND RENEWAL OF GOLD CENTRE PROPERTY LEASE
Rupert Resources Ltd. has entered into an option agreement with the bankruptcy estate of Lappland Goldminers Oy, whereby the corporation has acquired a six-month option to acquire the Pahtavaara gold mine, mill, exploration permits and concessions that represent a 124-square-kilometre land package in Finland in the highly prospective Central Lapland greenstone belt.
Under the terms of the agreement, total cash consideration to exercise the option is upfront cash payments totalling $500,000 (U.S.), and, in addition, the corporation would be required to pay $2-million (U.S.) from a production royalty on 1.5 per cent of go-forward revenues generated from the mine. If the corporation exercises the option, it will also be required to place environmental collateral amounting to approximately 640,000 euros.
Management of the corporation intends to use the six-month option period to verify the historically low operating costs for the mine, work through the requirements to transfer the requisite exploration and environmental permits, licences and concessions; build a comprehensive understanding of the licence geology; and test a number of promising drilling targets.
Brian Hinchcliffe, a director of Rupert Resources, said: "It could be that in Pahtavaara we have identified the right combination of production assets and exploration potential on its strategic land position for the next mining cycle. We look forward to bringing our exploration team's experience to bear on developing both open and underground gold targets in one of the world's most highly prospective and underexplored mineral provinces."
Gold Centre property lease renewal
Rupert has received approval for a 21-year renewal of the mining lease encompassing the Gold Centre property, which consists of mineral claims located in the Balmer township in the Red Lake mining division of Ontario. Rupert holds a 100-per-cent interest in the Gold Centre property, which has the distinction of being one of the best-positioned exploration land packages within the entire Red Lake gold mining camp. The Gold Centre property is immediately adjacent to and on trend with the world's richest gold mine, Goldcorp, now working within 600 metres of Rupert's boundary.
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