Black Fire Minerals to complete legal due diligence on Pilot Mountain Tungsten Copper Project

Black Fire Minerals (ASX: BFE) will now move to complete legal due diligence on the Pilot Mountain Tungsten Copper Project.

Black Fire has been notified that title issues affecting 45 of the 154 Mining Claims that comprise the project have been solved - and now believe that title is unencumbered.

Once the due diligence is completed, Black Fire can then make a final decision regarding exercising the option to acquire the project from Pilot Mountain Resources Inc.

About the project

In February this year Black Fire entered into an agreement to acquire the advanced project from Pilot Mountain Resources, as subsidiary of Pacific Gold Corporation (OTCBB: PCFG).

The project ranks favourably in tungsten grade with many existing tungsten mines and resource projects worldwide.

Under the terms of the deal with Pacific Gold Corporation, Black Fire will pay an initial US$50,000 in cash for a 100 day exclusive due diligence period and then may exercise its right to acquire a 24 month option to purchase for a further cash payment of US$450,000.

At any time before the end of the option period, the company may acquire 100% of the project for further cash payments spread over a further two year period totalling US$1.5m.

A further and final cash payment of US$1 million will be made upon the commencement of commercial mining.

The project is also subject to a royalty agreement with a third party totalling 2% of the gross revenue of any mining operation.

The project is located 250 kilometres southeast of the city of Reno in the mining friendly state of Nevada, USA, and its tenure covers significant tungsten, copper and silver mineralisation.

Union Carbide Corp initially discovered the prospect in 1916 and explored it between 1977 and 1983.

Originally published at: http://www.proactiveinvestors.com.au/companies/news/18804/black-fire-minerals-to-complete-legal-due-diligence-on-pilot-mountain-tungsten-copper-project-18804.html