Pacific Imperial Mines Inc. (TSXV:PPM.H) announced that it has entered into an arm’s-length binding letter of intent (LOI) with privately owned Inland Explorations Ltd. to acquire as much as a 60-percent interest in the Utah-based Keg Mountain property. One high-priority untested drill target at Keg Mountain shows “potential for a porphyry copper-molybdenum deposit and associated skarn mineralization.”
Closing will occur on or before April 28, 2014. When that happens, Pacific Imperial will pay C$50,000 and 1 million shares.
As quoted in the press release:
Under the terms of the Letter of Intent, PPM has the option to earn a 51% interest within 4 years by incurring total property expenditures of US$5.5M, issuing to Inland a total of 6.5 million shares in the Company, and making total cash payments of C$375,000, as well as posting any required exploration bonds and paying all annual property and permit related expenses.
Upon PPM earning a 51% interest, the Company shall have the option to increase its interest in Keg Property by an additional 9% to 60% by spending an additional US$4.5M on the Keg Property and delivering a pre-feasibility level study on the property within 2 years.