May 11 (SeeNews) - Canadian mineral exploration and development company Mundoro Capital said that it has granted an option on its Saje lead-zinc project located within the Zvezda license in southeastern Bulgaria to "an arm’s length third party private company".
Under the terms of the agreement, the unnamed company has committed to drill a minimum of 1000 metres on the Saje Project, and will then have one month to provide written notice to enter into an agreement with Mundoro in respect of the project, Mundoro said in a statement earlier this week.
The partner company of Mundoro will fund all costs during the option period.
Upon entering into an agreement, the third party company will pay Mundoro annual advance royalty payments in January of each calendar year until commercial production.
Mundoro will retain a 2% net smelter returns royalty on any metals production at the Saje project.
The Saje deposit is a brownfield area that was initially explored starting in the 1960’s and exploited by a government-run company from 1984 to 1992 for lead and zinc with by-products of copper and silver.