Ryan Gold Corp. (TSX: V.RYG, Stock Forum) said that it has amended the terms of its agreement with Castillian Resources Corp. (TSX:V.CT, Stock Forum) pursuant to which Ryan Gold has been granted the option to acquire a 10% working interest in the option held by Castillian to acquire a 100% interest in the Hope Brook property.
The Hope Brook gold property, located on the southwest coast of Newfoundland, has an indicated mineral resource estimate of 12.4 million tonnes grading 1.48 grams per tonne gold.
According to the Ryan Gold press release, in order to acquire its working interest, the company is required to incur aggregate exploration expenditures on the property of $2 million by Dec. 31, 2012.
Upon acquiring this interest, Castillian and Ryan Gold will form a joint venture under which Ryan Gold will have a carried 10% interest until Dec. 31, 2013, following which each company will contribute to further expenditures on the property in proportion to their respective joint venture interests.
Ryan Gold is an exploration company focused on gold exploration primarily in the Yukon Territory, Canada.
On Thursday, Ryan Gold was up 4% and was trading at $0.265 a share. The company has a market cap of $31 million, based on 117.1 million shares outstanding. The 52-week high and low was $1.25 and $0.245 respectively.