CMX...we have some of those
Chilean Metals option agreement for NISK property
2021-03-11 16:09 ET - Property Agreement
The TSX Venture Exchange has accepted for filing documentation relating to an option agreement dated Dec. 22, 2020, between Chilean Metals Inc. and Critical Elements Lithium Corp. (the optionor) Pursuant to the agreement, the optionor will grant an option to the company to acquire up to an 80-per-cent interest in the NISK property, consisting of a total of 90 mineral claims for a total of 4,589.11 hectares and located in the James Bay territory of Quebec. In order to acquire an initial 50 per cent of the property, the company is required to: (i) issue 12,051,770 common shares to the optionor on closing; (ii) make cash payments totalling $500,000 to the optionor, whereby $25,000 will be payable upon execution of the agreement, with additional $225,000 payable within five business days following the closing date, plus $250,000 payable within six months from the closing date; and (iii) incur an aggregate of $2.8-million in expenditures in respect of the property over a period of three years. Following the exercise of the first option, the company will acquire an initial 50-per-cent interest in the property, subject to 2-per-cent net smelter returns royalty in favour of the optionor in the event of a lithium discovery. The company retains the option to purchase 50 per cent of the royalty for a purchase price of $2-million.
Pursuant to the agreement, in the event that the first option is exercised, the company has an option to increase its interest in the property from 50 per cent to 80 per cent by incurring additional work expenditures for an amount of $2.2-million on or before the date that is four years from the closing date.
The exchange notes that an aggregate of 734,166 common shares will be payable to an arm's-length finder, Paradox Equity Partners Ltd., with 668,377 shares issued on closing and