Desert Mines and Metals (ASX: DSN) has signed a Terms Sheet between Korean Resources, a wholly owned subsidiary of Desert, with the vendors of Mining Right Jinan 89, which contains the historic Dongjin and Indae gold and silver mines.
 
Gold up to 17 grams per tonne, and silver up to 232 grams per tonne have been recorded at the properties, and mining records indicate operations have existed over several decades.

There is potential for mineralisation to extend below current workings, and the acquisition complements Desert's Korean Daehwa Molybdenum project.

Desert will pay $10,000 upon signature, and $5,000 one month after signature, and the vendors will register Desert's subsidiary, Korean Resources, as joint title holder.

Korean will fund 500 metres of drilling at the project within 1 year subject to satisfactory completion of a geophysical survey, formal receipt of approval to change the prospecting method from geophysics to drilling, and statutory forest clearances.

For its expenditure to this point, Korean will earn 60% equity in the project.

At the completion of the drill program, both parties have agreed to fund any further exploration work equally or if either party elects not to contribute, that party will dilute at a rate of 1% for every $10,000 of exploration expenditure.

The agreement provides Desert with the opportunity to further expand its footprint in Korea with minimal upfront expenditure, by gaining access to productive, high grade gold and silver deposits.