Pursuant to its plan to focus its capital on a single project and establish partnerships for its other assets, Finlay Minerals Ltd. (TSX-V:FYL) said Monday morning that it has optioned its ATTY Property in the Omineca Mining Division of north-central British Columbia to Serengeti Resources (TSX-V:SIR) for total consideration of $1.85 million, plus develop commitments.
Separately, Serengeti also acquired adjacent claims from Electrum Resource Corp. (who originally sold ATTY to Finlay in 1999), all of which are located directly adjacent to Centrerra Gold's (TSX:CG) Kemess Underground development and Keness East advanced exploration project.
The term of the agreement between Finlay and Serengeti is for eight years and calls for $625,000 in cash payments and another $975,000 in cash or stock, or combination of the two, and additional payments of $250,000 for Serengeti to buy Finlay's royalty rights.
Furthermore, Serengeti has committed to spend $12 million developing the ATTY property, for which at least $300,000 must be performed in the first year of the agreement.
All tallied, Serengeti now has rights to nearly 6,800 hectares of highly prospective ground in the area, with plans for an extensive development program this year.
Finlay's portfolio still contains the Silver Hope property, which includes porphyry copper-molybdenum mineralization discovered in 2010, along with three silver-copper mineralized zones, in a contiguous trend with the mined-out deposits of the former Equity Silver Mines that produced 71 million ounces of silver, 185 million pounds of copper and 508,000 ounces of gold.
The Vancouver-based company also has the PIL property, which abuts Sable Resource's (TSX-V:SAE) past-producing Baker Mine.
Shares of FYL have edged up 10.0% to 5.5 cents with today's option news. Shares of SIR have risen 11.1% to $0.15.