In a news release, Vancouver-based Irving Resources Inc. (IRV:CSE; IRVRF:OTCBB) reported that it has "signed a binding option agreement with Shimadzu Ltd. to acquire the 5.2 sq km Yamagano mining license, site of extensive historic high-grade gold vein mining, in southern Kyushu approximately 11 km southwest of the large, high-grade Hishikari gold mine."
The firm explained that the Yamagano mining district is host to numerous historical gold mining operations dating back to the year 1640. Irving Resources advised that Yamagano has not seen any modern exploration or drilling and is the nearest past producer neighbor to the Hishikari mine.
The company stated that gold veins at Yamagano appear to be associated with a particular geophysical feature identified as an area of anomalously high gravity. The firm emphasized that this characteristic was recognized very early at other Kyushu properties including the Kushikino gold mine where 1.80 million ounces (Moz) of gold was produced and the Hishikari deposits where 7.98 Moz of gold have been produced.
The company advised that the option agreement is binding and is exercisable for a period of 10 years from the signing date. The option terms call for Irving Resources to issue a total of 350,000 common shares over four years. The initial 87,500 common shares are issuable now at an established price of CA$2.90 per share. The remaining balance of shares will be split into equal amounts of 87,500 common shares due at the beginning of the second, third and fourth years. As part of the arrangement, Irving Resources is also required to commit aggregate property expenditures of US$250,000 on properties it controls within 10 km of the property.
Irving is responsible for paying the annual government fees required to maintain the property in good standing and is additionally required to pay the reasonable costs of required water testing and other costs related to maintaining safe operations at the property.
The firm stated that if the option is exercised and the transaction is approved by the Japanese regulating agency it will issue 350,000 additional common shares to Shimadzu and Shimadzu will be entitled to receive a 1% NSR royalty.
The company noted that it now has control over five key property positions in Kyushu including Yamagano, and the four Satsuma (A, B,C, and D) projects. The firm pointed out that each of these land holdings are subject to exploration alliances with Newmont Corp. and Sumitomo Corp. and that it is currently in talks with both companies to discuss strategy for advancing exploration at each project.
Irving Resources' CEO and Director Akiko Levinson remarked, "We are honored to have completed this agreement with Shimadzu...This is one of the great historic gold districts in Japan, but has seen no modern exploration. We look forward to beginning the search for further high-grade gold veins on the Yamagano mining tenement and adjacent lands we have staked."
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