North of 60 Mining News - The mining newspaper for Alaska and Canada's North

Gold Reserve Inc. Jan. 13 reported plans to acquire the LMS gold project in the Goodpaster Mining District near the Pogo Mine in Interior Alaska.

Gold Reserve Corp., a wholly owned subsidiary of Gold Reserve Inc., has agreed to pay Raven Gold Alaska Inc. US$350,000 to acquire the LMS gold claims, together with certain personal property.

Raven Gold, a wholly-owned subsidiary of Corvus Gold Inc., will retain a three percent net smelter return royalty interest on precious metals produced and recovered from LMS and a one percent NSR on any base metals produced and recovered from the property.

Gold Reserve also gained an option, for a period of 20 years, to purchase 1 percent of the precious metals royalty at a price of US$4 million.

"The expansion of the Corvus Gold royalty portfolio is a continuation of the company's strategy of enhancing shareholder exposure to future gold production while minimizing dilution and cost risk associated with its non-core assets," explained Corvus CEO Jeff Pontius.

LMS is an early-stage gold exploration property consisting of 36 contiguous state mining claims about 25 miles (40 kilometers) southwest of the Pogo Mine in Interior Alaska.

Gold Reserve, based in Spokane, Wash., is an exploration and development company incorporated under the laws of the Yukon Territory and listed on the TSX Venture Exchange.

"Like our earlier transactions, the partner is a key aspect of the deal, and with Gold Reserve, an emerging mine developer with a strong financial base, we believe we have the right group to do the right job," Pontius said.

Gold Reserve and Corvus expect to close the transaction upon final approval of the TSX Venture Exchange.

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Shane Lasley, Publisher

Over his more than 16 years of covering mining and mineral exploration, Shane has become renowned for his ability to report on the sector in a way that is technically sound enough to inform industry insiders while being easy to understand by a wider audience.

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