Valterra Resource (TSXV: VQA) and Ginguro Gold signed a letter of intent this week in which the latter expresses its intention to acquire an 80% interest in the Weepah property, located in Esmeralda County, Nevada.
To move forward with the deal, Ginguro would have to pay Valterra $10,000 upon execution of the LOI and incur in $1,050,000 in cumulative aggregate exploration expenditures on or in respect of the property over a 3-year period.
Historic production at Weepah has been estimated at 117,000 ounces of goldIn a press release, the companies said the letter of intent contemplates the execution of a formal definitive agreement within three months. The transaction would be subject to an underlying agreement with Nevada Select Royalty and the net smelter return royalties.
Valterra described the Weepah property as a mesothermal, high-grade gold exploration project that extends for 590 hectares, sits on the Walker Lane Gold Belt and is surrounded by growing resources such as Columbus Gold's Eastside deposit and West Kirkland's Hasbrouck deposit.
According to the Vancouver-based miner, the property has been explored and mined intermittently since 1902. Historic production has been estimated at 117,000 ounces of gold from shallow underground mines and a small open pit during two separate time intervals, from 1935 to 1939 and from 1986 to 1987.