The letter of intent ("LOI") outlines the general terms of a proposed joint-venture to explore the New Light Mine prospect in Washington State.
The existing mining lease has been assigned to Kalahari Green Tech in exchange for stock, and the LOI contemplates the parties signing a definitive joint-venture earn-in agreement within 60 days.
The earn-in agreements provides that South American will supply its mining expertise for exploration work and earn-in the amount of $200,000 within a twenty four month period to explore the property to earn a back-in interest of forty percent in the project.
South American Gold has entered into this agreement to reduce its exploration expenditures, and to continue to seek additional projects to add leverage for its shareholders.
In other news South American Gold announces it is in the process of reviewing its financial structure and business model to determine the optimum structure to advance shareholder interests in this challenging financing environment. We expect additional news during this fourth quarter and will update shareholders on material developments.
