As per the deal, as outlined in the previously announced letter of intent, US Gold will acquire an exploration lease for Richardson, along with an exclusive option to purchase a 60% interest in the project and enter into a joint venture with Select for its development.
Tri-Valley president and CEO Maston Cunningham said the deal with US Gold was executed on schedule, and exploratory field work on the Richardson site began on 5 July 2011.
"With this agreement, Select will reduce its operating costs by approximately $200,000 annually," Cunningham said.
"In addition, with the signing of the agreement, Select received its first option payment of $200,000 from US Gold, as provided in the deal."
Tri-Valley explores for and produces oil and natural gas in California and has two exploration-stage gold properties in Alaska.
