Canadian junior Prosper Gold (TSX-V: PGX) has inked an option agreement with to DS Resources and Mohave Mine Partnership to acquire a 100% interest in the Mohave gold project in Arizona, US, which has a long history of exploration and small-scale mining dating back to 1865.
The company’s wholly owned subsidiary, Prosper Gold USA, will pay $3.35 million in cash and $1.7 million for work expenditures over a five-year period to secure full ownership of the property.
“The opportunity to acquire the Mohave gold project was one we could not pass up,” chief executive Peter Bernier said in the statement. “The exploration potential for high-grade gold on this project is clear and we look forward to drilling the multitude of mineralized zones, many of which have never been drilled”.
The new asset is expected to complement Prosper Gold’s Golden Sidewalk project in Red Lake, Ontario, allowing for year-round exploration on two highly prospective land packages in low-risk jurisdictions.
The project includes 160 contiguous mining claims, which cover 1,176 hectares in Mohave County, Arizona.
After completing the cash payment, Prosper Gold said it would grant a 1.5% net smelter royalty to the DS Resources, Mohave Mine Partnership and Desert Ventures.