Prospector Renaissance Gold (TSX.V:REN) announced today that it has entered into a mining sublease agreement with Newmont US which would allow for the expansion of the Ecru Project, located in Lander County, Nevada.
Under the terms of the agreement, RenGold will add approximately 1120 acres of mineral rights adjacent to Ecru, which sits on the Battle Mountain-Eureka trend of gold deposits.
The lease lasts, initially, for 10 years with an option to extend it for an additional five years. If mining, development or processing operations are being conducted on the property on a continuous basis, then the lease could be extended indefinitely.
The annual payments that Renaissance makes to Newmont will be considered advance royalty payments to be offset against any future royalty obligations in the event of a mine being developed.
For Renaissance's President and CEO, Robert Felder, the deal means that his company is now in a position to most effectively test the targets on the project and explore for Carlin-type gold mineralization.