Marietta Project in Nevada, USA Signs Exploration Agreement with $250,000 Investment

en.Wedoany.com Reported - Bighorn Metals has signed an exploration lease and purchase option agreement with MSM Resources, securing exclusive exploration rights to the Marietta Project in Mineral County, Nevada, USA, with an option to acquire 100% interest in the fee lands and patented mining claims covered by the project. The initial term of the agreement is 3 years, with Bighorn holding the option to renew for two additional 3-year terms.

Under the agreement, Bighorn is required to pay MSM a $100,000 initial lease payment within 30 days of the effective date, and annual minimum rent payments of $100,000 on the 1st, 2nd, and 3rd anniversaries of the agreement's effective date, totaling $400,000 in lease payments over the first three years. To maintain the option in good standing, the company is also required to invest a cumulative $250,000 in project exploration over the first three years.

Bighorn may exercise the purchase option at any time during the lease term to acquire 100% interest in the Marietta Project for $2.5 million in cash. Upon completion of the acquisition, the project will retain a 2% gross returns royalty; Bighorn may pay an additional $1 million to reduce this royalty rate to 1%.

The Marietta Project is located in the Silver Star Mining District of the Excelsior Mountains, Nevada. The assets covered by the agreement include private lands and patented mining claims. Bighorn holds exclusive exploration rights to the project during the lease term and may decide whether to exercise the purchase option based on exploration results. The transaction is currently at the exploration lease and purchase option stage, and the acquisition of 100% project interest has not yet been completed.

The company officially announced the agreement to the public on September 4. The next phase arrangement currently disclosed is to advance exploration of the Marietta Project in accordance with the agreement and fulfill the minimum exploration investment required for the first three years; whether to ultimately pay the $2.5 million to acquire the project will be decided by Bighorn at a later stage based on exploration results.