An exploration permit has been obtained for Rakounga, which spans 250 square kilometers, and Nexus has done some exploration work already on the property.
To acquire the three-quarters interest in Rakounga, Kruger must pay CA$1 million in tranches and spend at least CA$1.25 million on developing the project over five years. During that period, Kruger will be the sole project operator.
"The option with Kruger Gold represents an important milestone for Nexus as it demonstrates the ability to monetize projects in our portfolio," Nexus President and CEO Alex Klenman said in the release. This then would allow the company to sustain itself and, thus, be better positioned to apply its resources to exploring its flagship projects.
Two net smelter returns royalties exist on the Rakounga property, one held by the underlying owner Belemyida SA and the other by Sandstorm Gold. Nexus stated, "Pursuant to the terms of the Option Agreement, following the acquisition of an interest in the Rakounga Project, Kruger has agreed to take responsibility for a portion of the royalties based on its proportionate interest in the project. The assumption of royalty obligations owing to Sandstorm remains subject to the finalization of a royalty acknowledgment agreement to be entered into between Sandstorm and Kruger."[NLINSERT]
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