The revised terms eliminate the high monthly cash payments for a small portion of the property package, while maintaining approximately 96 per cent of the original property package, about 90 square kilometres.
These changes will allow the company to focus on discovery and definition of high grade, epithermal gold mineralization on the remainder of the large property position, which surrounds the relinquished mineral concessions covering only approximately 4 per cent of the land holdings at the Charay Gold Project.
"Westridge will continue to explore the large and highly prospective Charay land package for high grade epithermal gold mineralization," Westridge CEO Peter Schulhof said.
"We know from our drill results that this system can produce high gold grades. Our drilling and surface exploration programs have identified multiple high grade gold veins and an extensive area of high grade gold mineralization at Charay.
"The larger property has received very little exploration, and we believe there is excellent potential for the discovery of additional high grade gold mineralization on the larger land package. We look forward to continuing to explore this epithermal gold system.
"The company also continues to examine other exploration and more advanced gold projects in the Americas. We have a great geological team that is focused on building shareholder value through the identification, acquisition and definition of high quality gold projects."
Westridge also continues to maintain agreements that provide for surface rights and access over the entire Charay Gold Project, including the mineral concessions that have been relinquished under the revised terms of the option agreement.
The revised option agreement covering properties at Charay was made among the company, its wholly-owned subsidiary, Minera Westridge S.A. de C.V., Musgrove Minerals (CVE:MGS), Musgrove's wholly-owned subsidiary, Minerales Jazz S.A. de C.V., Tektite Financial and Tektite's wholly-owned subsidiary, Jaznico Exploraciones S.A. de C.V.
The company has terminated the option on approximately 4 per cent of the land holdings at Charay and will focus further exploration on the Jazzy mineral concession.
The Jazzy mineral concession comprises approximately 96 per cent of the company's land position at Charay.
"With the revised option the company reduces the carrying costs of the Charay project by approximately 90 per cent and maintains the potential for further discovery of high grade, epithermal gold mineralization on the remaining property," Schulhof added.
Under the revised terms of the option agreement, the company has the exclusive right and option to acquire a 100 per cent interest in the Jazzy mineral concession by paying an aggregate of $210,000 to Musgrove and Tektite over three years.
In addition, the company will issue to Musgrove and Tektite an aggregate of 450,000 common shares in the capital of the company over a two-year period.
Westridge has also agreed to fund an aggregate of $1.3 million in exploration expenditures on the Jazzy mineral concession by the fourth anniversary of the option agreement.
Under the terms of the option agreement, the Jazzy mineral concession will be subject to an aggregate 2 per cent net smelter returns royalty payable to Tektite and Musgrove upon commencement of commercial production on the property.
The completion of the option is subject to the approval of the TSX Venture Exchange.
Westridge Resources is a Canadian-based mineral exploration company focused on the acquisition, evaluation and exploration of mineral resource properties. Westridge has an option to acquire up to a 100 per cent interest in the Charay Gold/Silver Project, located in Sinaloa State, Mexico.