08:45 AM EDT, 07/16/2024 (MT Newswires) -- Eldorado Gold ( EGO ) was granted the option to acquire full ownership of Brixton Metals' Atlin Goldfields Project, a mineral claim group near the town of Atlin in British Columbia, Canada, Brixton said Tuesday.

Brixton said that during the five-year option, Eldorado will fund 1 million Canadian dollars ($731,250) in exploration expenditures annually starting Sept. 30 and commit at least CA$350,000 of exploration expenditures around Sept. 30, for a total of about CA$5.4 million.

Eldorado will also pay Brixton CA$100,000 in cash within 10 days of signing the definitive option agreement and CA$250,000 in cash annually, for total payments of CA$1.1 million during the period, Brixton said.

At the end of the option period, Eldorado can exercise the option to acquire full ownership of the project by making a CA$7 million cash payment to Brixton, which may receive up to half of such payment in the form of Eldorado common shares.

Brixton said it will be the operator of the project during the option period, with Eldorado approving all project-related work programs and budgets.

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