In January 2016, IDR purchased a 50-percent interest in Butte Highlands Joint Venture LLC (“BHJV”) from Timberline Resources Corporation. BHJV owns the high-grade, underground, Butte Highlands Gold Project, located 15 miles south of Butte, Montana, within a prolific gold-producing region that includes several world-class, multi-million ounce gold deposits including Butte, Golden Sunlight, Montana Tunnels, and Virginia City.
IDR’s interest in the Butte Highlands project is “carried to production” by the joint venture partner, Highland Mining LLC. Under terms of the joint venture agreement, Highland Mining will fund all development costs associated with bringing the mine into production, with IDR’s 50-percent share of costs to be paid from proceeds of future mine production. Proceeds are to be split on an 80-20 basis (to Highland and IDR, respectively) until pay-back is reached, after which proceeds will be split evenly.
Highland has invested nearly $40-million at Butte Highlands to-date, building a modern gold mine, including nearly a mile of underground mine development and construction of surface facilities, all of which are located on private lands. Most surface facilities and infrastructure required for mining operations are already in place. All major permitting hurdles have been cleared.
*IDR management does not expect Butte Highlands to be advanced in the near future.