In a news release, Nexus Gold Corp. (NXS:TSX.V; NXXGF:OTCQB) announced it entered an agreement to option its Dorset gold project in Newfoundland to Leocor Ventures for $2.75 million in cash and expenditures.
Per the definitive agreement, Leocor, a Vancouver-based minerals explorer, will be able to acquire up to a 100% interest in Nexus' newly acquired Dorset project after it makes to Nexus a series of payments totaling $1.25 million over four years and incurs expenses on the project of at least $1.5 million over five years, both according to a set schedule.
Also, Leocor will assume responsibility for a 2% net smelter returns royalty on the Dorset, which United Gold and Margaret Duffitt currently hold.
Leocor is required to make the first payment, of $100,000, to Nexus Gold upon approval of the option agreement by the Toronto Stock Exchange.
Dorset consists of a series of mineral claims over 275 hectares south of Newfoundland's Pine Cove gold mine.
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