Phenom Resources has signed an option agreement to acquire up to a 100% interest in the King Solomon Gold Project, located in Nevada, US.
This strategic move involves a four-year option agreement with a private vendor for 100% in 178 unpatented mining claims, referred to as the King Solomon Gold Project.
Phenom committed to an aggregate payment of $150,000 and the issuance of 75,000 shares over a four-year period to fully exercise its option and acquire the King Solomon Property.
Additionally, the vendor will retain a 3% net smelter return (NSR) royalty on any mineral products derived from the property.
The company will have the opportunity to purchase up to a 2% NSR for $3m at any time, which would reduce the vendor’s NSR to 1%.
Following the initial four-year term, advanced royalty payments will be required, starting at $60,000 per year for years five to ten, increasing to $75,000 per year for years 11–15 and then $100,000 per year thereafter until production.
### Additional Claims and Due Diligence Period
The agreement also stipulates that any additional claims staked within an area of interest surrounding the current property will be incorporated under the same terms.
Phenom Resources will conduct a 25-day due diligence period to further assess the acquisition.
### Geological Significance and Potential
The King Solomon Gold Project comprises 178 claims over approximately 1,140ha in central Nevada. It is situated 32km south of Phenom’s Dobbin Gold Project and exhibits geological characteristics of a regional-scale Carlin-type gold system.
The project’s location is also strategically significant, being 45km east of Kinross Gold‘s Round Mountain gold deposit and 45km south-east of the Northumberland Carlin-type gold deposit.
Phenom Resources company director and geological consultant Dave Mathewson expressed excitement about the acquisition, stating, “Phenom is only going after gold projects in Nevada that have regional-scale targets. I have had my attention on this prospect for many years, so we are very excited to have secured King Solomon at this time.”
Mathewson emphasized the potential for significant Carlin-type gold deposits at the King Solomon Project, pointing out that previous explorers may not have fully understood its geological significance.
### Insight:
The acquisition of the King Solomon Gold Project by Phenom Resources highlights the company’s focus on regional-scale gold projects in Nevada with significant exploration potential. The addition of the King Solomon Project to Phenom’s portfolio represents a strategic move to tap into the geological characteristics of a Carlin-type gold system in a prime location within Nevada. By conducting thorough due diligence and implementing a structured payment plan, Phenom Resources aims to unlock the full potential of the King Solomon Project and further establish its presence in the gold mining sector.
