In a news release, Nexus Gold Corp. (NXS:TSX.V; NXXGF:OTCQB) announced it entered an agreement to option its Dorset gold project in Newfoundland to Leocor Ventures for $2.75 million in cash and expenditures.
Per the definitive agreement, Leocor, a Vancouver-based minerals explorer, will be able to acquire up to a 100% interest in Nexus' newly acquired Dorset project after it makes to Nexus a series of payments totaling $1.25 million over four years and incurs expenses on the project of at least $1.5 million over five years, both according to a set schedule.
Also, Leocor will assume responsibility for a 2% net smelter returns royalty on the Dorset, which United Gold and Margaret Duffitt currently hold.
Leocor is required to make the first payment, of $100,000, to Nexus Gold upon approval of the option agreement by the Toronto Stock Exchange.
Dorset consists of a series of mineral claims over 275 hectares south of Newfoundland's Pine Cove gold mine.[NLINSERT]
1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees. Within the last six months, an affiliate of Streetwise Reports has disseminated information about the private placement of the following companies mentioned in this article: Nexus Gold
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article until three business days after the publication of the interview or article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.