Aegean Metals Group Inc. (TSXV:AGN,FWB:A91) has entered into an Option Agreement with Lidya Madencilik Sanayi ve Ticaret A.S., a Turkish exploration company. Under the terms of the agreement, Lidya may earn a 70 percent interest in Aegean’s Hot Maden gold-copper prospect located in Artvin Province, Eastern Turkey.

As quoted in the press release:

Under the terms of the Agreement, Lidya can earn a 70% interest in the Property by incurring USD$3M of combined exploration expenditures and cash payments to Aegean as per the following schedule:

  • Lidya will commit to a minimum exploration expenditure at Hot Maden of USD$500,000 in Year 1 of the option agreement, after which time Lidya will receive a 20% interest in the Property. This minimum work commitment will also include at least 800 m of diamond drilling.
  • Upon the completion of the Year 1 commitment, Lidya will then have a 60 day period to decide whether to continue with the earn-in agreement (in which case a USD$150,000 cash payment will be made to Aegean) or to discontinue with the earn-in.
  • Lidya would then have the right to earn-in to a further 50% interest in the Property (for an aggregate total of 70%) by spending an additional US$2M on the Property and by making a cash payment to Aegean of USD$350,000 by the end of Year 4.
  • After completion of the earn-in period a Special Purpose Vehicle or “Newco” will be formed, in which the initial shareholdings will be Lidya 70% / Aegean 30%. An industry standard dilution formula will apply to any party that does not contribute on a pro-rata basis to subsequent expenditures. In the event that either parties’ interest falls below 10%, the interest will either be purchased by the other party at fair market value or revert to a 0.5% NSR.
  • Lidya will be the operator during the earn-in period.

Aegean CEO, Eric Roth, said:

Aegean is very pleased to be partnering with Lidya to advance the Hot Maden prospect. Lidya is a well-respected, Turkish company and their geological knowledge of the area will be essential in advancing the Property with further exploration and through to the drilling stage.

Click here to read the Aegean Metals Group Inc. (TSXV:AGN) press release