Evolving Gold Corp. and Agnico-Eagle Mines have signed a letter agreement to form a joint venture on Evolving Gold’s Rattlesnake Hills gold project west of Casper, Wyoming, USA. Agnico-Eagle has the option to earn up to a 70% interest in the project by carrying Evolving Gold through completion of a feasibility study. To earn the 70% interest over a seven-year period, Agnico-Eagle is required to make payments to Evolving Gold totaling $12 million, to purchase $23 million in the common shares of Evolving Gold, and to spend a minimum of $41 million on exploration and development work on the project.
Under the terms of the letter agreement, a binding joint venture agreement was to be completed by June 1, 2011, with a drill program ensuing shortly after. Agnico-Eagle’s minimum work expenditure for the first year is $3 million.