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Erris Resources Enters Option Agreement to Acquire 80% of Scottish Gold Project
Wednesday 11 December 2019

11 December 2019 - European focused mineral consulting and exploration company Erris Resources (LSE: ERIS) has entered into an option agreement with GreenOre Gold plc giving Erris Resources the option to acquire 80% of the Loch Tay gold and associated base metals project in Perthshire, Scotland, the company said.
 
The project area comprises 237 square kilometres of highly prospective ground within the Grampian Gold Belt.

Two priority target areas, Ardtalnaig and Glen Almond, are identified as having excellent gold potential based on the presence of historic workings, mineralised outcrops and alluvial gold occurrences.

The option agreement provides Erris Resources with a low risk option for discovery on an exciting and new gold project within a stable jurisdiction

Erris Resources maintains its robust cash position with approximately EUR 1.6m cash held at end November 2019.

Erris Resources continues to review projects in low risk jurisdictions internationally that fit its investment criteria.

Erris Resources and GreenOre entered into an Option Agreement on 9 December 2019 to explore for gold on the area covered by the Loch Tay Licence in Perthshire, Central Scotland. The option agreement is conditional, inter alia, on the satisfactory conclusion by Erris Resources of a due diligence review of the project.
 
The Project area comprises 237 square kilometres of highly prospective ground within the Grampian Gold Belt, a region of Dalradian rocks, which host several significant mineral occurences and deposits of high-grade gold, base metals and baryte across Northern Ireland and Scotland. Grampian gold deposits include the Curraghinalt deposit in Northern Ireland (6.09 Moz at 13.6g/t Au) and the Cononish deposit in Scotland (266 KOz at 13.4 g/t Au).
 
An initial due diligence review, which involved preliminary prospecting and mapping by Erris Resources, has identified two priority target areas, Ardtalnaig and Glen Almond, as having excellent gold potential based on the presence of historic workings, mineralised outcrops and alluvial gold occurrences.

The Option Agreement is conditional on Erris Resources issuing an option notice to GreenOre following satisfactory completion by Erris Resources of a due diligence review of the Project by no later than 18 January 2020.

Following the issue of the Option Notice, Erris Resources will have the option to earn 80% of the Loch Tay Project consisting of the Loch Tay Mines Royal Option from GreenOre by defining a minimum inferred resource of 250,000 ounces gold, to be defined by an Independent Competent Person, within four years of the date of the Option Notice.

Upon defining 250,000 ounces within the required time frame, the ownership of the licence shall be allocated as to 80% Erris Resources and 20% GreenOre and any subsequent funding shall be on a pro-rata basis.

In the event of either party failing to fund their respective portion, they will be diluted according to a standard industry formula.

If either party shall dilute to less than 10% then that party shall forfeit all ownership and be entitled to a 2% Net Smelter Return Royalty.

Erris Resources shall have the option to purchase 50% of the NSR for USD 1m at any time prior to a production decision on the project. Erris Resources will be the operator and will manage the exploration programme.
 
Erris Resources plc (EPIC: ERIS.L) is a European focused, discovery driven consulting and exploration company. Supported by the Canadian mining major, Osisko Gold Royalties, which has a 18.9% interest in the company.

The company has an established portfolio of zinc and base metals assets in Ireland and gold projects in Sweden, Finland and Norway which it is looking to further build on.

Led by a highly qualified team with extensive corporate and sector experience, Erris's strategy is to create shareholder value through commercial discovery of base or precious metal assets in proven mineral districts and in favourable European jurisdictions.
Details
Date Published: 11/12/2019
Target: Tay gold and associated base metals project in Perthshire, Scotland/option to acquire 80%
Country: UK
Deal Size: 1m (USD)
Sector: Metals/Mining
Type: Corporate acquisition
Financing: Cash
Status: Agreed
Vendor: GreenOre Gold
Buyer: Erris Resources
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