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Mining company Hochschild Mining said it had exercised its option to start earning in to a 60% interest in the Snip gold located in the Golden Triangle and in Tahltan Territory, British Columbia, Canada, and held by Skeena Resources.
Under the terms of the September 2018 deal, Hochschild would be required to spend at least C$7.5 million in exploration or development expenditures on Snip in each year of the option period.
Once Hochschild has spent at least C$22.5 million on the project, the option agreement can be can be extended by a further year following a payment of US$1 million to Skeena.
Hochschild would also be required to provide 60% of the financial assurance required by governmental authorities for the Snip mining properties.
'This represents a first step in our strategy to add another high-grade project with strong upside potential into our pipeline. We look forward to working with Skeena and building on their strong relationship with the Tahltan Nation,' the company said.