Rhyolite has the right to acquire an 80% interest in the 96km2 Brothers Exploitation concession in Suriname. The Project is located approximately 140 kilometers south of Paramaribo, the capital city of Suriname and accessible by road and within the same general mineralized lithologic and structural setting as IAMGOLD's Rosebel Gold Mine and Newmont's Merian Mine.
The Brothers Project is an exploitation license, which allows mining with no additional permits. The Project is not in or near any protected areas, and no villages are located within the concession. Brothers is within the area of interest between Newmont and the government of Suriname in their Mineral Agreement.
Brothers is considered one of the more prospective projects in the Guiana Shield with a number of high priority targets supported by 246 grab samples from the extensive small scale mining operations. Of these samples, 84 exceed 1 g/t Au (34%) and 22 exceed 10 g/t Au with a high assay of 105 g/t Au.
Highlights of the Joint Venture Terms:
Rhyolite has the right to earn up to an 80% interest in the Brothers Project, the right is exercisable by completing the following:
- US$200,000 cash payment within six months of the closing of the Transaction, for a 20% interest in the Project.
- Drill 3,000 meters with minimum committed work capital of US$1 million within 18 months of the closing of the Transaction and make a US$300,000 cash payment for a 40% interest.
- Drill an additional 10,000 meters with minimum committed work capital of US$3.5 million within 42 months of the closing of the Transaction, and make a US$400,000 cash payment for a 60% interest. If the Company does not earn a 60% interest in the Project, it will return the shares earned to date.
- Deliver a preliminary economic assessment ("PEA") within 66 months of closing of the Transaction and payment of US$500,000 for a 70% interest.
- Deliver a feasibility study and payment of US$1.25 million, for an 80% interest.
- Upon commencement of commercial production at Brothers, make a US$2.5 million cash payment.
- Upon closing of the Transaction, the Company is entitled to purchase a 0.5% net smelter return royalty for US$2 million.