Strategic Energy Resources has announced it signed an option agreement with Evolution Mining Limited for a two-year option to buy EL9057 and EL9368 (Tenements), which are close to the active Cowal Gold Mine owned by Evolution Mining.
In a statement, Strategic Energy Resources said Evolution Mining has a two-year option to buy Strategic Energy Resources’ entire interest in the EL9057 and/or EL9368 Tenement and related data. Evolution Mining shall be responsible for maintaining the tenements in good standing throughout the Option period.
It costs $300,000 in cash to exercise the 2-year option, according to Strategic Energy Resources. If either tenement pays $100,000 in cash, the option period can be extended for the third year. Evolution must pay $1,000,000 in cash for each tenement in order to exercise the option to buy either tenement, Strategic Energy Resources added.
According to Strategic Energy Resources, completion will be contingent upon the ordinary terms and conditions applicable to this kind of transaction and the exercise. Any mandated regulatory reduction in price is possible.
Strategic Energy Resources Director Dr David DeTata said the Option for the sale of these two assets to Evolution is consistent with our strategy of generating valuable exploration projects which can be divested to fund our Greenfield exploration.
“These projects were identified and secured less than 18 months ago and have incurred minimal expenditure to date. The Option to sell to Evolution represents a strong return an investment, is testament to our ability to identify and secure new projects and positions these exploration opportunities with Evolution to advance,” DeTata stated.
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