Proto Resources (ASX:PRW) has announced it entered into a binding term sheet with Dourado Resources (ASX:DUO) whereby Proto can earn up to 70% in Dourado’s tenements, situated approximately 40 km south of Sandfire Resources’ Doolgunna copper-gold project.
Proto says the Mooloogool project is very prospective for copper-gold mineralization as well, and claims the addition of this project to its portfolio definitely has its merit. Initial exploration on the project will aim to complete the reconnaissance work that was commenced by Dourado and will include mapping and sampling as a first phase exploration program.
Proto will acquire 51% of the property by making a cash payment of A$50,000 and by issueing 300 million shares at a deemed value of 0.2 cents each. A further 90 million shares will be due once the company delineates a resource estimate containing in excess of 150,000 gold-equivalent ounces.
Proto can earn 70% by spending A$2.5M on the property within four years of signing the definitive agreement.
Proto’s shareholders will have to vote on this deal, and the company expects to schedule a general meeting this summer.
> Click here to read the press release
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