Galleon, BMR in Madison deal

In an effort to attract a third party to further develop the Madison gold-copper property near Butte, Mont., owners BMR Gold (VSE) and Galleon Mining (VSE) plan to consolidate the holding.

Galleon recently granted BMR an option over its 49% interest in the project. Under the terms of the agreement, Galleon will receive an aggregate of $108,000 in BMR shares in staged payments up to the point of a production decision. Galleon retains a 12.5% net profit interest in the property up to a total of $600,000, with the royalty capped at 5.5% until payout of project capital costs.

The companies note that the new property agreement will allow BMR to deal with 100% of the property in seeking a joint venture partner.