The TSX Venture Exchange has accepted for filing an option agreement dated April 8, 2014, between the company and Kinross Minera Chile Ltda., a subsidiary of Kinross Gold Corp. The agreement concerns the company's disposition of up to a 75-per-cent interest in the company's Las Pampas mining concessions in northern Chile.

For Kinross Minera to acquire a 75-per-cent interest in the property, it must:

• Incur $500,000 in exploration work in the first year;
• Incur an additional $4.5-million to earn an initial 60-per-cent interest in the property within four years;
• Spend an additional $20-million or complete an NI 43-101 bankable feasibility study on the property to earn an additional 15-per-cent interest within nine years.

If Kinross Minera does not exercise the second option, a 60/40 joint venture will be formed and the company will have the option of converting its 40-per-cent interest into a 2.75-per-cent net smelter royalty (NSR) on the Pampa Sur portion of the property and a 1.75-per-cent NSR on the Pampa Buenos Aires portion of the property area. Kinross Minera can buy down these royalties to 1.75 per cent and 0.75 per cent, respectively, by paying the company $6-million for each royalty.

If Kinross Minera does exercise the second option, a 75/25 joint venture will be formed and the company will have the option of converting its 25-per-cent interest into a 2.5-per-cent net smelter royalty on the Pampa Sur portion of the property and a 1.5-per-cent NSR on the Pampa Buenos Aires portion of the property area. Kinross Minera can buy down these royalties to 1.5 per cent and 0.5 per cent, respectively, by paying the company $3-million for each royalty.

The transaction is arm's length.

Further information may be found in the company's news release dated April 14, 2014.