RE: Nice dealHeres a deal announced the same day asTiex/Newmont. This one is between Strongbow/Xstrada. Notice how similar it is to the TIX deal. Except its weaker, imo a lot weaker.
ttfn
nopoo
Strongbow enters option agreement for Inza with Xstrata
Strongbow Exploration Inc. has entered an agreement with Xstrata Copper Canada, allowing Xstrata the option to earn up to a 75-per-cent interest in Strongbow's Inza copper-gold property, located in the Quesnel Trough region of central British Columbia. The 6,104-hectare property is road accessible, approximately 54 kilometres north-northwest of the community of Fort St. James. Exploration work completed by Strongbow has identified a 1,100-by-1,200-metre, drill-ready copper-gold porphyry target on the property and Xstrata intends to complete a drilling program during the 2011 summer field season. All required approvals and permits are in place for the drilling program.
Under the terms of the agreement, Xstrata may earn an initial 51-per-cent interest by making staged cash payments to Strongbow totalling $100,000 and incurring cumulative exploration expenditures totalling $1.1-million over a four year period. Upon vesting at a 51-per-cent interest in the property, a joint venture will be formed and Xstrata will maintain the right to earn a further 24-per-cent interest (75-per-cent interest total) by financing the completion of a prefeasibility study and a feasibility study, or incurring $20-million in expenditures towards the completion of a prefeasibility study and a feasibility study on the property.
Heres my breakdown:
Strongbow
75-per-cent interest
copper-gold property
Quesnel Trough region
approvals and permits in hand
Xstrata may earn an initial 51-per-cent interest by making staged cash payments to Strongbow totalling $100,000 and incurring cumulative exploration expenditures totalling $1.1-million over a four year period.
Upon vesting at a 51-per-cent interest in the property, a joint venture will be formed and Xstrata will maintain the right to earn a further 24-per-cent interest (75-per-cent interest total) by financing the completion of a prefeasibility study and a feasibility study, or incurring $20-million in expenditures towards the completion of a prefeasibility study and a feasibility study on the property.
Tiex
75-per-cent interest
copper-gold property
Quesnel Trough region
Phase 1 consists of a 5 year, $2.5 million minimum aggregate work expenditure for Newmont to earn 51% with a minimum 1st year commitment of $100,000. The agreement also provides Tiex Inc. cash payments in the aggregate of $375,000 by Newmont annually over the Phase 1 earn-in, with the minimum 1st year payment of $15,000.
Upon Newmont completing Phase 1 earn-in, Newmont at its sole discretion may elect to earn and vest in an additional 24% in the Property by (i) completing an additional $7 million in minimum work expenditures on the Property within an additional 4 years; or (ii) completing a positive feasibility study on the defined Property.