Parlane Resource Corp. (TSX VENTURE:PPP) has announced that it has reached new agreements with Galena Capital Corporation and Rodolfo Cuevas Coffey the owner of the Mercedes Property, which gives Parlane the right to earn a 100% interest in the Property and all rights thereto.
The Property is located approximately 200 kilometres southeast of Hermosillo, in the state of Sonora, Mexico and consists of three contiguous mineral claims totaling 360 hectares: La Mina del Oro, 16 hectares; Ampliacion Mina del Oro, 251 hectares; C.R., 93 hectares. (See press release dated September 8, 2010.)
Parlane, through its wholly owned Mexican subsidiary, entered into an Option Agreement directly with Coffey for the acquisition of a 100% interest in the Property (subject to a net smelter royalty) in consideration of:
- an initial payment of US$25,000;
- an additional US$25,000 within six months;
- a final payment of US$450,000 within 12 months.
Upon full payment of the US$500,000, Coffey will immediately transfer all right, title and interest in the Property to Parlane and will register ownership in the name of Parlane's Mexican subsidiary.
In conjunction with the Option Agreement above, the three parties entered into a Termination & Settlement Agreement which provides for the following:
- Parlane and Galena terminate the LOI announced on September 8, 2010;
- Galena and its wholly-owned subsidiary (Norma Mines S.A. de C.V.) terminate their agreement with Coffey, effectively giving up their rights to earn a 70% exploitation and profit interest in the Property;
- In consideration of the termination of their agreement with Coffey, Galena will receive a 1% (one percent) Net Smelter Royalty ("NSR") payable on gold or other metals produced from the Property after 50,000 gold equivalent ounces of metal have been produced by Parlane. If Parlane sells or abandons the Property, then the NSR shall apply to all production from the Property;
- Also, in order to complete the acquisition of the 100% interest in the Property, Parlane has agreed to pay Galena the following:
- $15,000 within 15 days of execution of the agreement;
- an additional $75,000 within 12 months of the date of the agreement.
Source: Parlane Resource Corp.