On February 10, 2021, and amended on March 26, 2021, the Company (the “Optionee”) entered into a Mineral Property Option Agreement (the “Agreement”) with Perry English, 1544230 Ontario Inc and Gravel Ridge Resources Ltd. (collectively the “Optionor”). Pursuant to the Agreement, the Optionee as an option to acquire 100% interest in the mineral claims known as Red Lake Pringle South Property located in the Red Lake Mining Division of Ontario (the “Claims”) from the Optionor.
Under the terms of the Agreement, the Optionee has an option to acquire all rights, title and interest in the Claims. In addition, the Claims are subject to the reservation by the Optionor of a 1.5% net smelter returns royalty (the “NSR Royalty”) to be paid by the Optionee upon commercial production of mineral products.
Under the Agreement, the Optionee will make cash payments totalling $87,000 as follows:
a. make a cash payment of $15,000 upon execution and delivery of this agreement – paid,
b. make a further cash payment of $18,000 on or before February 10, 2022,
c. make a further cash payment of $24,000 on or before February 10, 2023, and
d. make a final cash payment of $30,000 on or before February 10, 2024,
Following the exercise of the option, the Optionee will have the right to purchase 1.5% of the NSR Royalty for $1,500,000.
