Pasinex Resources Limited, a Toronto-based mining company, through its wholly-owned subsidiary Pasinex Resources Nevada Limited, it has entered into an option agreement with Cypress Development Corp and Silcom Systems Inc. to earn up to an 80 percent interest in the Gunman zinc project located in White Pine County in northeastern Nevada.
Pasinex has acquired the option by honouring the terms of Silcom's original option agreement to acquire an 80 percent interest from Cypress in the Gunman zinc project.
The option agreement's total consideration to acquire the interest is staged over four years and is approximately $1.5 million payable in a combination of cash and Pasinex common shares (assuming a share price of 22 cents per share and exchange to U.S. dollars of 79 cents using the Dec. 5, closing price and rate, respectively). In addition, the Company must incur minimum exploration expenditures totaling $2.95 million over the same four year period.
The company can accelerate payments to acquire ownership sooner and also has no obligation to continue payments if they decide not to proceed in exercising the option.
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