VISCOUNT MINING CORP. Viscount Mining Corp. announced it has entered into an exploration earn - in agreement with a wholly owned subsidiary of Centerra Gold Inc. ("Centerra"). Centerra is a Canadian-based gold mining company focused on operating, developing, exploring and acquiring gold properties in North America, Asia and other markets worldwide and is one of the Western-based gold producers in Central Asia.
The Agreement covers the Company's Cherry Creek property located in White Pine County, Nevada. Initially, Viscount will be the project manager. The Cherry Creek Project (the "Property") is located in north-eastern Nevada ~50 miles north of Ely, consisting of 320 unpatented and patented claims covering more than 2,658 hectares.
The Property contains more than 20 past producing mines where high grade gold and silver production came from up to the 1920's. Under terms of the Agreement Centerra has the right to acquire a 70% interest in the Property through (a) making annual payments totaling $250,000 over a 4 year period, and (b) spending $8,000,000 on mineral exploration costs on the Property over 4 years. If Centerra's option vests, then Viscount and Centerra will enter into a joint venture agreement: Centerra would hold an initial interest of 70% in the Joint Venture, including the Property and any properties in the Area of Interest, and Viscount would hold an initial interest of 30% in the Joint Venture, including the Property and any properties in the Area of Interest. To maintain their respective percentage interest, each Party would then, upon provision of a reasonable amount of notice, contribute on a pro rata basis to further exploration and any potential development or mining on the Property and/or the properties within the Area of Interest.
The Parties would, in the Joint Venture Agreement, establish a management committee for which the representation of each Party will, at a minimum, be in proportion to its percentage interest in the Joint Venture. This management committee will propose and determine the exploration and potential development of mining on the Property and/or the properties within the Area of Interest.
