Timberline Resources JV agreement with PM&Gold

Oct 9, 2019

2019-10-08 19:17 ET – Property Agreement

The TSX Venture Exchange has accepted for filing documentation pertaining to a joint venture agreement dated June 28, 2019, between Timberline Resources Corp. and PM&Gold Mines Inc. (PM&G).

Pursuant to the joint venture agreement, PM&G will initially finance exploration and development activities on the Lookout Mountain property, Nevada, in two stages. PM&G can earn an initial 51 per cent in the property by expending $6-million (U.S.) on exploration and development over a two-year period. Timberline will manage the joint venture at least through the initial $6-million (U.S.) stage I investment. PM&G has the right to manage the stage II activities.

After completion of stage I, Timberline may elect to participate at 49 per cent on a pro rata basis. If Timberline elects not to finance stage II exploration, PM&G can elect to earn a 70-per-cent interest in the property by financing completion of a feasibility study prepared in accordance with National Instrument 43-101 within three years, and Timberline can exercise this option if PM&G elects not to. If neither party elects to exercise the 70-per-cent option, subsequent expenditures would be on a pro rata basis unless either party exercises the options described below.

Following completion of its initial (stage I) $6-million contribution in years 1 and 2, PM&G may elect not to proceed with its stage II obligations and instead may elect to (among other options) relinquish its interest in the joint venture in exchange for: (i) a 10-per-cent net profit interest; or (ii) a 2-per-cent net smelter return royalty. Following completion of PM&G’s phase II contributions, Timberline may elect to (among other options) relinquish its interest in the joint venture in exchange for: (i) a 10-per-cent net profit interest; or (ii) a 2-per-cent net smelter return royalty.

For further information, please refer to the company’s news releases dated July 11, 2019, and July 29, 2019, available on SEDAR.

http://timberlineresources.co/