Rhino Exploration Inc. (TSX: V.RHI, Stock Forum) said it has entered into an option agreement with World Ventures Inc., of Vancouver, British Columbia and District Gold Inc. of Mississauga, Ontario, to acquire the Sleeper-Lapon Canyon gold project in Nevada.
The Sleeper-Lapon Canyon gold project, consists of 19 leased claims and 17 lode claims for a total of 36 claims situated some 60 kilometres south of Yerington, Nevada.
According to the Rhino Exploration press release, the company may exercise the option and purchase up to an undivided 75% working interest in the project by paying District an initial payment of $200,000 and issuing District 250,000 common shares in the capital of the company on or before Feb. 28, 2013.
Furthermore, Rhino would have to pay District additional option payments of $200,000 cash, or at District's option, issuing District shares in lieu of such cash payments, on or before the first and second anniversaries of the initial payment.
Finally, Rhino would have to incur $2 million of exploration work over a four-year period.
After completion of the requirements, Rhino will be vested with a 75% ownership, and the vendors a 25% working interest in the Sleeper-Lapon Canyon project and the parties shall proceed in a joint venture.
Rhino Exploration is a junior exploration company with a focus on minerals.
On Wednesday, Rhino was up 64% and was trading at $0.18 a share. The company has a market cap of $1.7 million, based on 9.4 million shares outstanding. The 52-week high and low was $0.20 and $0.10 respectively.