North American Tungsten Corporation Ltd NATUF

royalty reduction news

[RGS1]

N.A. Tungsten works out royalties on CanTung, MacTung 2005-01-31 18:30 ET - News Release Also News Release (C-AUR) Aur Resources Inc Mr. Stephen Leahy of North American Tungsten reports North American Tungsten Corp. Ltd. (NTC) has reached an agreement with Aur Resources Inc. to amend the royalty payable on both the CanTung and MacTung properties. The terms of the amendment to the CanTung royalty agreement are: Aur Resources will reduce its royalty from 4 per cent of the net smelter returns to 1 per cent of the net smelter returns; and NTC will pay to Aur Resources the amount of $125,000 on the plan implementation date (as defined in NTC's plan of compromise and arrangement). The terms of the amendment to the MacTung royalty agreement are: Aur Resources hereby grants to NTC the right and option to reduce the MacTung royalty from a 4-per-cent net-smelter-return royalty interest to a 1-per-cent net-smelter-return royalty interest, such option to be exercisable by NTC upon paying to Aur Resources the amount of $100,000 within six months of the plan implementation date, paying to Aur Resources an additional $1-million by the earlier of 10 years after the plan implementation date and 60 days after the receipt of a water licence issued in connection with any proposed development of the properties (as such term is defined in the MacTung royalty agreement) for mineral production. If NTC has not exercised the option by the fifth anniversary of the the plan implementation date, NTC must pay an additional $200,000 to Aur Resources on or before the fifth anniversary of the plan implementation date in order to maintain its right to the option. If NTC does not make such payment to Aur Resources, the option will thereupon terminate.