UPDATE 1-Erin Ventures to sell Belize gold project
* Says to sell Ceibo Chico gold project for C$750,000
* Says to use proceeds to fund other projects
Aug 23 (Reuters) - Canadian junior mining and exploration company Erin Ventures Inc (EV.V) said it agreed to sell its Ceibo Chico gold project in Belize for C$750,000 ($716,300) and use the proceeds to fund its other projects.
The sale is subject to a 3 percent net smelter return (NSR) royalty on any hard rock production, which the buyer may purchase for C$1 million per point, or C$3 million in total, Erin said in a statement.
Victoria, British Columbia-based Erin, which also owns the Deep River gold project in North Carolina, said it would receive C$50,000 within two weeks of completion of due diligence and C$700,000 upon closing, due in two months.
The company also said the buyer had agreed to spend C$350,000 on exploration by the third year of the deal, or the property would revert to Erin.
The company's shares, which have gained about 70 percent since August 2009, closed at 8.5 Canadian cents Friday on the Toronto Venture Exchange. ($1=1.047 Canadian Dollar) (Reporting by Arnika Thakur in Bangalore)