Under a venture option agreement signed Thursday, Kinross will assume operatorship of the PWC project and can earn an initial 60% interest in PWC by incurring a minimum of $10 million in qualifying work expenditures.
The Canadian gold major can earn an additional 15% interest (for a total 75% interest) by incurring at least another $10 million in qualifying work expenditures within two years of exercising the initial earn-in option.
Upon exercise of the initial earn-in option, a Nevada-registered joint venture company will be established for Kinross and Riley to hold their respective interests in PWC. Upon exercise or termination of the second earn-in option, the parties will fund ongoing operations of the JV based on their proportionate interests.
There is a dilution provision stating that should Riley’s interest in the JV company be reduced to 10% or less, the company’s interest will then be converted to a 2% net smelter…
