The Ixhuatan gold project is an advanced exploration stage project located in Chiapas, Mexico.
Cangold has paid Brigus C$1m ($989,120) and has issued six million Cangold shares to acquire the initial option and will be required to pay Brigus C$1m ($989,120) and issue six million Cangold shares after 12 months and an additional C$3m ($2.96m) and four million Cangold shares after 24 months.
To exercise its option and acquire the 75% interest, the company will then pay Brigus C$5m ($4.94m) and issue four million Cangold shares as well as complete an independent third-party feasibility study on the Campamento Deposit within 36 months.
Following Cangold’s exercise of the purchase option, Cangold and Brigus will hold 75% and 25% interests respectively and will be responsible for their pro-rata costs in jointly developing the Ixhuatan deposit.
Brigus will retain a 2% net smelter return royalty over the project, and upon commencement of commercial production, will also receive a payment of C$5 per ounce of gold in the proven and probable category included in the feasibility study.
