Terraco Gold Corp. (TSX.V TEN | US: TCEGF), has a mix of advanced and early-stage gold-silver projects in Idaho and Nevada, USA.

The 100% owned Almaden Project is located 12 miles east of Weiser and 78 miles north of Boise, Idaho. The project hosts a National Instrument 43-101 compliant measured plus indicated resource of 864,000 ounces of gold and an inferred resource of 84,000 ounces of gold within 300 feet of surface. The advanced- stage Almaden project has excellent access with good infrastructure and includes over 199,000 feet of historic drilling in 887 drill holes. Terraco has completed a drill program to explore the extension of the near surface mineralization that is open to the north and south, as well as test for high-grade, bonanza-style structurally controlled gold mineralization at depth. Project comparisons for Almaden are The Ken Snyder "Midas Mine" (Newmont) and the Hollister Mine (Great Basin Gold) located in northeast Nevada.

The 100% owned Moonlight Project is located 21 miles northeast of Lovelock, Nevada and about five miles north of the Coeur d'Alene Rochester silver-gold mine. The Rochester Mine has produced over 127 million ounces of silver and 1.5 million ounces of gold in its 24 year history and has recently returned to production. Additionally, the Moonlight Property adjoins the north side of the Barrick Gold Corp./ Midway Gold Corp Spring Valley joint venture. Spring Valley, operated by Barrick, hosts a National Instrument 43-101 measured, indicated and inferred resource of 4,100,000 ounces of gold. Barrick's 2009 and 2010 drilling confirms the gold mineralization is open to the north (towards Moonlight) and at depth.

 

Terraco has executed a definitive agreement with Seymork Investments Ltd., a British Columbia company, for the acquisition of a significant land package and the option to acquire an additional 2,287 acres of net surface rights and 6,187 acres of net mineral rights at and in the area of Terraco's Moonlight property. The Transaction provides Terraco with 100% ownership of a larger strategic land package and a better overall exploration opportunity for its Moonlight Property.

 

Terraco has also enhanced its presence in the Humboldt trend by entering into a three-way transaction, whereby Terraco arranged for a US$5,000,000 (non-dilutive) cash infusion and acquired an option on a mineral production royalty of up to 2.5% (on a sliding scale net smelter returns basis) on claims covering part of the Barrick-led Spring Valley Project.

 

2013-05-13 13:21 PT - Property Agreement

 

The TSX Venture Exchange has accepted for expedited filing documentation of:

(i) a royalty purchase agreement (the Schmidt agreement) dated April 21, 2013, between Terraco Gold Corp., TGC Holdings Ltd., a wholly owned subsidiary of the company, and Mary Ann Schmidt, as personal representative of the Estate of Paul G. Schmidt (Schmidt); and

(ii) a royalty purchase and option agreement (the MF2 agreement) dated April 21, 2013, between TGC and MF2 LLC. Schmidt holds a 1-per-cent sliding scale net smelter returns royalty from the production of mineral claims located in Pershing county, Nevada.

Pursuant to the Schmidt agreement, TGC will acquire the royalty from Schmidt in consideration of $4.2-million (U.S.) and 800,000 common shares of the company. The Terraco parties require the financial assistance of a strategic investor to finance the cash consideration. As a result, pursuant to the MF2 agreement:

(i) concurrent with TGC's purchase of the royalty pursuant to the Schmidt agreement, MF2 will acquire the royalty from TGC for $5.2-million (U.S.);

(ii) at TGC's direction MF2 will pay $4.2-million (U.S.) of the $5.2-million (U.S.) to Schmidt;

(iii) TGC will retain $1-million (U.S.) of the $5.2-million (U.S.); and

(iv) MF2 will grant to TGC an option to acquire 50 per cent of the royalty. The option is exercisable by TGC paying MF2 $2.6-million (U.S.) within the earlier of: (i) Dec. 31, 2016; or (ii) one year of a change of control of either of the Terraco parties.