Green Glen Minerals Ltd has agreed an exclusive option for long-term access and development, including drilling, for the Lead Trial gold prospect within the Loch Tay licence in Perthshire, Scotland.
LEAD TRIAL
The company, previously named Erris Gold, is exploring the discovery near Loch Tay, 43km east of Scotgold Resources’ Cononish gold mine and within the Grampian gold belt.
In December 2022 Green Glen said it was frustrated by slow progress in negotiations with the landowner over access to the site.
Previous work on the site has included channel sampling, deep overburden sampling and six-hole scout drilling for 565 metres.
AGREEMENT
The company has been granted an option period of 15 years from 17 March 2023 to conduct exploration activities leading to resource estimates and feasibility studies.
Green Glen can also apply for planning permission for proposed developments if it defines a viable discovery.
Additionally, the company has an option for the landowner to grant a lease or leases over parts of the site for which it has planning permission.
The lease is for 21 years and can be extended for a further ten years on six months’ notice.
The agreement includes a draft commercial lease which covers “many eventualities” from the application for future planning permission to mining and after care at the site.
NSR royalties granted to the landowner in the event of production are in line with industry norms globally.
FUNDING
In a joint statement executive chairman David Hall and chief executive officer Aiden Lavelle said they were also considering a listing or “other transaction” in the event of a defined economic resource, as well as a fundraise.
“The Lead Trial prospect is a significant gold prospect and requires major follow-up drill programme to determine its economic potential.
“The company has sufficient funds to continue as a going concern as there have been little costs other than legal fees over the past nine months however a further fundraise will be required to commence the drilling programme that is warranted.
“Despite the strong gold price, the market for early-stage exploration companies will have to improve significantly and significant drill intersections or perhaps a small gold resource would have to be defined before a listing can be considered.
“The company may consider other avenues such as transactions with listed shell companies or mergers/acquisitions to grow the company.”
Green Glen is also looking at other potential deals to expand its portfolio.