Klondike Silver Corp. (CVE: KS) recently executed a binding letter of intent with Victory Mountain Ventures Ltd. (CVE: VMV), under the terms of which Klondike will option part of the Silver Slocan Mining Camp in southeastern British Columbia. A more concrete Option Agreement is expected to emerge within a fortnight.
Victory now gains a 50 percent interest in the Silvana West and Cody Creek claims through payments to Klondike as well as shouldering exploration costs for a 3-year period. Victory could also earn another 25 percent of the project—subject to Klondike’s approval—by making a one-time payment of cash and shares. Any newly discovered resources open a route for Victory to receive royalties of up to 50 percent of the sales proceeds, but this would have to take place within the initial 3-year period.
Primarily, exploration efforts will concentrate on the silver-lead-zinc potential reserves to the west of the Silvana Mine; the current deal requires Victory and Klondike to jointly oversee all explorations there. DailyFinance.com presents a map highlighting exploration potential between the Silvana Mine and the Standard and Mammoth mines further west. Cody Creek, also promising excellent exploration potential and located to the northeast, is also included in the terms of the deal. Head over to the DailyFinance press release to explore detailed option agreement terms.
Klondike Silver Corp. operates a number of silver properties in Canada, focusing in southeastern British Columbia, where the Slocan Mining District has thus far produced in excess of 24 million ounces of silver since the 1800s.