After a relatively long period without significant news, Terraco Gold seems to have shifted a gear now, so The Critical Investor sat down with CEO Todd Hilditch for a company update.
Meeting in Vancouver around the latest VRIC show, I felt it was an opportune time to interview Terraco Gold Corp.’s (TEN:TSX.V; TCEGF:OTCPK) CEO Todd Hilditch on a number of subjects. First Paul Zink, a royalty veteran was contracted, and shortly afterwards on February 1 an additional royalty was acquired from the Schmidt Family Mining Partnership LLC on the Spring Valley Gold Project in Nevada. This is a 0.5% Net Smelter Returns royalty (NSR royalty) on lands within a one-half mile perimeter of the Schmidt Claim Block. Red Kite Mine Finance also had a right to, and purchased, an identical royalty on the same lands, for the same price, USD$567,895. Furthermore, according to the news release:
“Terraco currently owns a 3% NSR royalty on the Schmidt Claim Block covering a majority of the known gold resource at Spring Valley, as well as a 1% NSR royalty on adjoining additional lands to the Schmidt Claim Block (the “Additional Royalty Area”3 ) covering the northeast portion of the known gold resource at Spring Valley. The acquisition of the Perimeter NSR adds new royalty coverage on areas beyond the Schmidt Claim Block and further increases Terraco’s Additional Royalty Area to 1.5% NSR. The Perimeter NSR also adds brand new royalty coverage on the southern portion of the Spring Valley resource where Barrick Gold Corp. (“Barrick”) previously completed step out drilling outlining further evidence for the potential to expand Spring Valley’s resource base.”
I found it particularly interesting to see this royalty increase the existing 1% royalties to 1.5%, as one part of those covers about a third of the delineated Spring Valley deposit. …read more