Simultaneously the existing net smelter royalty on these projects will be reduced from 2.5% to 2.0%.
In consideration, 380,000 Otis Common Shares of Otis will be issued to the vendors. The transaction results in Otis increasing its interest to 100% in what is known as the Oakley Project, a land package that comprises Blue Hill Creek, Matrix Creek and what is known as Cold Creek, all in Cassia County, Idaho.
Blue Hill Creek hosts an existing NI 43-101 inferred resource of 163,000 ounces gold at 0.51 grams per tonne. Matrix Creek, immediately adjacent and contiguous to Blue Hill Creek, consists of 41 federal lode mining claims covering 820 acres and a 320 acre Idaho State Mineral Lease.
“We are very pleased to increase our ownership to 100% in the emerging district-scale Oakley Project,” said Otis chief executive Craig Lindsay.
“We see a significant amount of exploration potential at Oakley for both gold and silver, and having a 100% ownership interest increases our flexibility in how we approach the development of this exciting asset. We are planning fieldwork at Oakley this summer, and will be announcing a specific work program in due course.”
Story by ProactiveInvestors