On August 9, 2020, Sabina Gold & Silver Corp. and Prosper Gold Corp. (TSX.V: PGX) signed an Option Agreement that gave the Company the right to purchase Sabina’s 100% interest in the Golden Sidewalk property and the Skinner property, which contains about 3,000 hectares of mineral claims, leases, and patents in the Red Lake mining district of Ontario.
Prosper Gold has exercised this right. The Company acquired 100% of the Properties from Sabina by issuing 1,500,000 common shares from its treasury, paying $50,000 in cash, and incurring $2.6 million in expenditures. The Company and Sabina then entered into Royalty Agreements, under which Prosper Gold will pay Sabina a 2.0% net smelter returns royalty on the proceeds from the production and sale of all ores, minerals, metals, and materials mined or removed from the Golden Sidewalk Property, and a 1.0% NSR on the proceeds from the production and sale of Products mined or removed from certain “Additional Property.”
The Company exercised the option to buy the mining properties two years early, solidifying its ownership of 160 square kilometers of mining claims and leases in a world-class mining jurisdiction.