With the ceremonial signing of two leases with option to purchase agreements, TVI PACIFIC has consolidated its land package in the Shuikoushan gold mining district in the Hunan province of the Peoples Republic of China.
TVI can earn a 100% interest in an 86 km 2 area by making licensing payments totalling US$1 million over the next five years. An additional US$250,000 must be spent on exploration during the first year and escalating to US$2 million in the last year for a total of US$5.25 over the period. Or TVI can acquire a 100% interest in the licences at any time by exercising its right to purchase at a price of US$8 million (net of any previous payment and subject to a 2% net smelter return royalty).
The second agreement covers an area of 28 km2 and calls for licensing payments totalling US$155,000 over five years plus US$465,000 in exploration expenditures over that time. TVI can purchase a 100% interest for US$1 million (net of previous payments and subject to a 5% NSR royalty).
These agreements are the first between China and a foreign mining company that would allow outright ownership of precious metal exploration licences by a foreign corporation. Until this time, the Chinese insisted that joint ventures be created.
Contact TVI president and CEO Clifford James in Calgary at 403-265-4356 for additional information.