Evrim Resources Corp. has signed a three-year exploration alliance agreement with Meridian Gold Co., a subsidiary of Yamana Gold. The alliance allows Evrim royalty free access to Yamana’s dataset in the western United States for gold and base metal project generation.
The dataset contains information from more than 7,000 locations ranging from early-stage exploration to advanced projects and represents approximately 30 years of exploration work completed by Meridian and predecessor FMC Gold Co. It covers a large portion of the western United States with a particular focus on Nevada.
“The dataset consists of digital and non-digital data with proprietary non-public information that has not been reviewed for many years, making it a unique and valuable asset,” said Paddy Nicol, Evrim president and CEO. “Western United States represents a new mining and exploration jurisdiction for Evrim and reinforces our strategy to gain competitive advantages in areas in which we operate. We look forward to applying our skillset to identify new opportunities with this under-utilized dataset.”
During the alliance period, Evrim will compile a fully digital and comprehensive dataset to generate new targets and ideas within the designated area. Should Evrim acquire a project within the designated area, Yamana will have the exclusive right for 60 days to enter into an option agreement to earn a 75% interest. The terms included that within the first two years, Yamana will fund at least $1 million for initial exploration expenditures, including any acquisition or land staking costs; fund additional exploration expenditures between years 3 and 10, or until such time as Yamana has defined a NI 43-101 compliant prefeasibility study on a minimum 1-million-oz gold equivalent resource; make a cash payment of $150,000 upon signing the option agreement and additional payments of $100,000 on the first, second and third anniversaries; upon Yamana earning its interest and the formation of a joint venture, Yamana and Evrim will jointly fund programs on a respective 75%/25% basis; should Evrim’s interest in a project fall below 10%, its interest will convert to a 2.5% net smelter royalty (NSR) of which 1.25% NSR can be purchased by Yamana prior to production for $5 million; and Evrim will be operator during the first US$10 million of exploration expenditures.
The option period is independent of the alliance period and may extend beyond the three-year term. At the end of the alliance, both parties will retain a copy of the digital database.
