Cahuilla Gold Project: Great Eagle’s First Tokenization-Ready U.S. Patented Land Claim

Cahuilla NI 43-101 Certified Gold Project, Imperial County, California

On May 16, 2024, Great Eagle announced it had signed a binding letter of intent (“LOI”) with Teras Resources Inc. to acquire 100% of the subsurface mineral rights pertaining to a U.S. Patented Land Claim package, located in Imperial County, California, collectively known as the Cahuilla gold project.

Cahuilla is a historic gold deposit well-known within the gold mining industry. It has undergone extensive exploration since the 1980s, involving seven different mining companies including major gold producers such as Homestake, Newmont, Kennecott, and most recently, Teras Resources. Teras alone has invested more than $26 million in the property.

The 1,680-acre Cahuilla gold project contains a multi-million ounce, tokenization-ready deposit of certified gold and silver resources, as detailed in a National Instrument 43-101 (NI 43-101) technical report. This NI 43-101 report certifies:

  • 1,261,364 ounces of indicated gold resources.
  • 14,336,659 ounces of indicated silver resources.
  • 74,870 ounces of inferred gold resources.
  • 685,520 ounces of inferred silver resources.

The Cahuilla gold project straddles two land packages, being subdivided into two separate gold/silver deposits, with each deposit pertaining to a two-phase acquisition deal. The first phase acquisition (“Phase 1”) is a binding agreement that Teras is in a position to sell to Great Eagle for US $8,616,660. The second phase (“Phase 2”) Great Eagle has agreed to purchase for US $9,760,243. The total agreed purchase price for the entire Cahuilla gold project is US $18,376,904.

However, Great Eagle is only able to close on the purchase of Phase 1 at this time, as Teras is still in the process of negotiating the severability of subsurface rights from surface rights with the other partners to the land pertaining to the Phase 2 transaction. Great Eagle Gold is confident Teras will successfully complete the Phase 2 acquisition negotiations; however, in the meantime, the Teras Resources technical team, together with the Great Eagle Gold technical team, have agreed to split the total gold deposit into two distinct subdivisions and to allocate the respective portions of the overall gold and silver resources delineated in the NI 43-101 report to their respective acquisition phase, respectively, with separate mineral rights titles pertaining to each Phase independent of the other. The geological 3D modeling and resource allocation process involves oversight and confirmation by Qualified Persons as defined by National Instrument 43-101- Standards of Disclosure for Mineral Projects.

The Phase 1 Mineral Rights purchase price of US $8,616,660 breaks down as follows:

  • 592,841 ounces of indicated gold resources, valued at US $12.50 per ounce, at a cost of US $7,410,513.
  • 6,594,863 ounces of indicated silver resources, which at a 90:1 gold-silver ratio, equals 73,276 ounces of gold equivalent indicated resources, valued at US $12.50 per ounce, at a cost of $915,953.
  • 35,189 ounces of inferred gold resources, valued at US $7.50 per ounce, at a cost of US $263,918.
  • 315,339 ounces of inferred silver resources, which at a 90:1 gold-silver ratio, equals 3,504 ounces of gold equivalent inferred resources, valued at US $7.50 per ounce, at a cost of US $26,278.

The Phase 2 Mineral Rights purchase price of US $9,760,243 breaks down as follows:

  • 668,523 ounces of indicated gold resources, valued at US $12.50 per ounce, at a cost of US $8,356,538.
  • 7,741,796 ounces of indicated silver resources, which at a 90:1 gold-silver ratio, equals 86,020 ounces of gold equivalent indicated resources, valued at US $12.50 per ounce, at a cost of $1,075,249.
  • 39,681 ounces of inferred gold resources, valued at US $7.50 per ounce, at a cost of US $297,608.
  • 370,181 ounces of inferred silver resources, which at a 90:1 gold-silver ratio, equals 4,113 ounces of gold equivalent inferred resources, valued at US $7.50 per ounce, at a cost of US $30,848.

Following the execution of the Definitive Agreement, Teras will receive 20% of the total purchase price of the resource pertaining to the Phase 1 Mineral Rights (US $1,723,332) within 30 days. An additional 30% of the purchase price (US $2,584,998) will be due within 180 days of the agreement, with the remaining 50% (US $4,308,331) payable on or before 12 months from the agreement date.

Additionally, a Phase 3 deal has been negotiated, where Great Eagle has agreed to pay Teras $7.50 per ounce for any new gold resources discovered and certified in the project area, with Teras funding all associated costs. Teras is granted the right to explore and develop an additional inferred gold resource located outside the existing NI 43-101 technical report area, which currently outlines gold and silver resources. Great Eagle acknowledges that all exploration and mineral resource certification by Teras will be confined to the U.S. Patented Land Claim boundary that houses the existing NI 43-101 deposit. Teras has the exclusive right to undertake exploration activities at its own expense within the designated boundary, excluding the area covered by the current NI 43-101 deposit, for a period of 6-9 months following the signing of the Definitive Agreement. Furthermore, Great Eagle Gold commits to paying Teras $7.50 per ounce for any inferred gold resources delineated under the NI 43-101 guidelines during this period.

INVESTOR INQUIRIES:
+1 (754) 946-4527
info@natgoldir.com

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Cahuilla Property Map