Bullion River strikes deal to buy mines
July 5, 2004
Bullion River Gold Corp., a publicly held company based in Reno, said last week it signed an agreement to acquire two mining properties in the Klamath Mountains 15 miles northwest of Redding, Calif.
The mines could be in production as early as 2005, Bullion River’s president said.
The mines, which would be purchased from two privately held companies based in Wisconsin, have produced at least 200,000 ounces of gold during mining that has conducted intermittently from 1852 through 2001.
The property consists of 1,022 acres, of which 482 acres are patented land, as well as a mill that operated as recently as 2002.
Bullion River has paid a non-refundable deposit of $10,000 to the owners of the property, which allows Bullion River 90 days to conduct its due diligence.
If the deal goes ahead, Bullion River will pay the owners $15,000 and will pay an additional $50,000 on June 30, 2005, followed by bimonthly payments of $50,000.
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If mining begins, the bimonthly payment will be increased to $175,000.
Bullion River will continue to make the bimonthly payments until a total of $1.5 million has been paid to the sellers.