Mawson Gold Limited (TSE:MAW) (OTCPINK:MWSNF), previously called Mawson Resources, is to joint venture its permitted and drill-ready Western USA epithermal gold project (WUSA) to Aguila American Gold Ltd (Aguila).
In a statement, the junior explorer, said it has inked a letter of intent (LOI) over a deal, whereby Aguila will invest US$1.2 million in the project to earn up to an 80% interest.
Mawson will hold a 20% non-dilutable position until a decision to mine, and will be free carried by loans from Aguila, repayable from production cash flows, it told investors.
READ: Mawson Resources unveils name change to Mawson Gold as it narrows its focus on precious metals projects
"While Mawson continues to focus on our core gold projects in the Victorian Goldfields of Australia and Lapland in Finland, we have found a solid partner in Aguila to share in the upside of the WUSA gold project in Oregon," Mike Hudson, CEO at Mawson said in a statement
"Shareholders can anticipate results from drill programs from four globally precious-metal terrains being Finland, the Victorian Goldfields, Mt Isa in Australia and now Oregon during the remainder of the 2020 year," he added.
WUSA, an underexplored, potentially district-scale project, sits in the so-called central western Cascade ranges of Lane and Douglas counties, Oregon and consists of an area of interest of 150,500 hectares.
It is highly prospective for high and low sulphidation epithermal gold systems, and is next to a 19th century gold rush area. Modern-day placer mining is still being carried out there.
Under the joint venture, Aguila must invest US$200,000, including 600 meters of diamond drilling during calendar 2020, to earn a 51% interest. By investing a further US$1 million in exploration, by December 31, 2022, it can earn an additional 29% interest.
On Aguila acquiring an 80% interest, the 20% holding of Mawson will be non-dilutable until a decision to mine, and Mawson shall be free carried by loans from Aguila, repayable from production cash flows.
The acquisition is still subject to completion of a private placement by Aguila, noted Mawson.
On August 5, Mawson said it was changing its name to Mawson Gold td as the exploration company narrows its focus on precious metals.
The Vancouver-based firm recently acquired a portfolio of projects in the Victoria goldfields of Australia to complement its flagship Rajapalot gold-cobalt project in Finland.
Mawson shares added 4% to C$0.52 each.
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