12:00 PM EDT, 05/22/2024 (MT Newswires) -- Phenom Resources ( PHNMF ) on Wednesday said reached an option agreement to buy up to a 100% interest in the King Solomon Gold Project in Nevada for US$0.15 million in cash and 75,000 shares paid out over four years.

The project consists of 178 claims covering about 1,140 hectares in central Nevada.

The unnamed vendors will retain a 3% net smelter return royalty on any mineral products derived from the property. Phenom will have the right to buy back a 2% NSR for US$3 million at any time, leaving the vendors with a 1% NSR.

Advanced royalty payments will be required thereafter under a schedule of US$60,000 per year from years five to 10, US$75,000 per year from years 11 to 15, and US$100,000 per year thereafter until production.

Any additional claims staked within an Area of Interest around the current property would fall under the terms of the agreement. The company has a 25-day due diligence period.

All securities issued in connection with the property option will be subject to a four-month-and-one-day statutory hold period, the company said.

Phenom shares were last seen up C$0.01 to C$0.54 on the TSX Venture Exchange.

Price: 0.54, Change: +0.01, Percent Change: +1.89