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Update: GoGold's Value Could Increase With The Latest Agreement

GoGold Resources' (GLGDF) local Mexican subsidiary has signed an agreement with a Mexican counterparty, whereby GoGold acquires the option to certain tailings which could be processed using the heap leach facility at its Parral Tailings gold and silver project.

As part of the option agreement, GoGold will be paying the optionor a fixed fee of $15,000 per month until it decides it will either drop the option (at no cost) or exercise it and start processing the ore provided by the third-party. In the second scenario, the optionor will also be entitled to 12% of the net profit of the operation, as well as continuous payments of $15,000 per month. These monthly payments will likely add some pressure to GoGold, as it incentivizes the company to prioritize the third-party ore (in order to minimize the total payment for the tailings); so I expect GoGold to move fast on this, and… Read More …