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Barrick Gold's wholly owned LAC Minerals is ready to sell 83 mining claims to Dateline, including the Colosseum Gold Mine and surrounding areas.
Dateline is obliged to deposit $ 500,000 into escrow account by March 21, 2021. This amount will be transferred to LAC if Dateline expresses its intention to terminate the agreement or if the transactions are not closed by October 21, 2021.
Dateline will further be required to provide the relevant authorities with $756,880 in reclamation bonds and pay Barrick $1.5 by the time the feasibility study is completed, the mining activities begin, or the property is sold.
Barrick will also be entitled to 2.5% of the smelter's net income from all future mining of any metals at the Colosseum Gold Mine.
Dateline intends to raise $1 million through a private placement for professional investors to complete the acquisition of the gold mine. The company will issue up to 400 million new shares at 0.25 cents until March 19, 2021.
Dateline is currently in negotiations with a US lender for a $6.8 million cred-it line. The funds will reportedly be allocated to complete an underground development and drilling program at its wholly owned Gold Links Project in Colorado.
Following the acquisition Dateline will proceed to historical data analysis, geophysical study and the drilling program at the Colosseum Mine to con-firm resource estimates and verify the depth and extent of mineralisation.
The Colosseum Gold Mine is located at the Walker Lane Trend site in California. It hosts several significant sites such as the Castle Mountain Gold Mine developed by Equinox Gold, the Colosseum Mine and America's only earths mine - Mountain Pass Mine developed by MP Materials.
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