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07:35 AM EDT, 10/06/2016 (MT Newswires) -- Silver Standard Resources (SSRI) said Thursday that it has signed an option agreement with Eagle Plains Resources Ltd. to acquire up to an 80% interest in the Fisher project, located in Saskatchewan, Canada.
The Fisher project covers the immediate extension of the shear zone that hosts the company's Santoy Gap deposit.
Under the terms of the agreement, Silver Standard will explore the Fisher project during a four-year option period. To earn a 60% interest in the Fisher project, Silver Standard is required to spend $4 million in exploration expenditures, including $400,000 for the 2016 exploration program conducted by Eagle Plains.
Additionally, the company is required to make a $100,000 initial cash payment at closing and $75,000 annual cash payments for each of the four years of the option period. Upon earning the 60% interest in the Fisher project, it will have a 90-day, one-time option to earn an additional 20% interest, for a total of 80%, by making a cash payment of $3 million, at which time an 80% / 20% joint venture will be formed to advance the property.
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