Xali Gold Corp. announced that it has signed an Option Agreement with Barrick Gold Corporation (Barrick) on the Tres Marias Property (Tres Marias or the Property) located in southern Peru. As per the Agreement, Barrick must pay Xali Gold USD 175,000 over a 5-year period and spend $500,000 in exploration work to earn 100% of the Property subject to Xali Gold retaining a 1.5% Net Smelter Return (NSR) Royalty.

Barrick retains the right to purchase 1% of the NSR Royalty, for a single one-time payment of USD 750,000, which would decrease the NSR Royalty from 1.5% to 0.5%.