Corp. (CVE:PGC) reported yesterday that it has sold a 50 per cent interest in 16 claims, known as the Guibord property in Ontario, to Victory Gold Mines (CNSX:VGO) and
The 16 claims will be owned 40 per cent by Victory Gold and 10 per cent by St Andrew, with Plato retaining control of the remaining 50 per cent.
Plato will get $40,000 and 1.0 million shares of Victory Gold.
The agreement also provides options to both Victory Gold and St Andrews.
Victory Gold has the right to own a 60 per cent interest in the Guibord properties, if it spends a minimum of $700,000 in exploration expenditures on the property within three years, and Plato receives $100,000 in cash or Victory Gold shares, at Plato's option.
If the option was exercised, Victory Gold would have a 60 per cent stake, St Andrew would hold 15 per cent and Plato would have the remaining 25 per cent.
After two years of the closing of the deal, Victory Gold will give notice to St Andrew and Plato as to whether it intends to exercise its option by the third anniversary.
If Victory decides not to, St Andrew has an option to spend a minimum of $200,000 in exploration expenditures within three years, and Plato will receive from Victory $100,000 in cash or shares, at Plato's option.
If completed, the final ownership in the Guibord property will be see Victory Gold take 50 per cent, St Andrew take 25 per cent, and Plato take 25 per cent.
A 2 per cent net smelter royalty will remain with the property, one per cent of which can be bought back for $500,000.
has a portfolio of properties in gold mining camps in northern Ontario, northern Quebec and Santa Cruz, Argentina.
The northern Ontario project includes 4 properties - Guibord, Harker, Holloway and Marriott in the Harker/Holloway gold camp located east of Timmins, Ontario.
In November 2010, Plato signed a deal granting St Andrew the option to earn a 75 per cent interest in the properties.
The northern Quebec project includes 7 properties - Nordeau Bateman, Vauquelin, Vauquelin Pershing, Vauquelin Horseshoe, Pershing Denain, Hop O'My Thumb and Vauquelin II.
Plato also signed in November 2010 an agreement giving
the option to earn a 75 per cent interest in two of the above properties.
In Argentina, the company holds 75 per cent of the Lolita property comprised of contiguous mineral rights totaling 27,857 hectares. Work is advancing on this property with a drill program anticipated for 2012.