(Sharecast News) - Scotgold Resources announced on Thursday that its wholly-owned subsidiary, SGZ Grampian, has entered into 13 new 'Option Agreements' with Crown Estate Scotland, which replace the five existing Option Agreements entered into on 5 November 2015.
The AIM-traded firm explained that in November 2015, SGZ Grampian entered into the five agreements, covering an area of approximately 800 square kilometres each, and for a term of six years.
Those agreements provided SGZ Grampian with the right to a mining lease, should a development project be identified as a result of exploration undertaken by the company within the option area, and the relevant planning authority granting planning permission.
"Under these agreements, SGZ Grampian was required to reduce the area of each agreement to a maximum area of 250 square kilometres by the third anniversary of each agreement, but had the right to apply for new agreements to cover 'shed' areas," Scotgold explained in its statement.
"The company conducted a review of the geological prospectivity, current land use and ownership and general practicality of undertaking future development within the original option areas, and concluded that it wished to retain 13 new blocks of 250 square kilometres or less."
It said that, further to discussions with Crown Estate Scotland, it was agreed that rather than retain the five original, albeit reduced, option areas and apply for eight new option areas, SGZ Grampian would apply for 13 new option areas and surrender the original agreements.
That would not only have the benefit to the company of a new six-year term for all 13 areas, but also that the required biannual reporting required for all areas was synchronised, enabling the firm to conduct and optimise its exploration programs on a regional basis.
"The company is now pleased to announce that the 13 new option agreements have been concluded retrospectively to 5 November 2018."
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