PanEx will commence an initial phase of work, which will entail expenditure of up to €100,000 within 180 days.
PanEx may elect within this period to commence what has been termed the First Development Phase, under which it will spend at least €1,500,000 within 18 months of election to do so.
Upon providing satisfactory evidence of such expenditure, Scotgold’s Portuguese subsidiary will issue shares representing 50% of its total issued share capital to PanEx.
Panex may then elect to commence a Second Project Development Phase, under which it will spend at least €5,000,000 within a further two years of election to do so, a clause which is designed to allow for the completion of e a feasibility study.
At that point, Scotgold Portugal will issue shares representing a further 30% of its total issued share capital to PanEx.
"We are delighted to conclude this Agreement with PanEx, who, using their strong technical and financial resources, will enable the accelerated development of the highly prospective Pomar licence,” said Scotgold chief executive Richard Gray.
“In particular it allows us to retain an interest in the project as it advances and potentially continue to participate beyond the feasibility study stage."