TORONTO (CP) -- Black Pearl Minerals Consolidated (BLK) has signed an agreement with Cuprus Mining Corp. to sell its Ferro and Wekusko gold property options in exchange for $1.3 million plus gold that would be worth about $1.6 million at current prices.
In addition to paying Black Pearl with shares or cash worth $300,000 by Oct. 31 and $1 million cash by Nov. 30, Cuprus will also deliver 2,000 ounces of gold to Black Pearl once initial gold production from the property reaches 2,667 ounces.
This will allow Black Pearl to fulfill its gold option agreement with its debenture holders. The agreement gives holders the right to purchase up to 2,000 ounces of gold at US$500 per ounce.
Cuprus will also take on all obligations under the Ferro and Wekusko Option Agreements including cash payments, share payments and work commitments.
Black Pearl will retain the right to all lithium-bearing and feldspar mineralization on the properties for the purpose of exploration and mining. Completion of the transaction is subject to regulatory approval.
(c) Canadian Press