Post by
Fabe on Oct 30, 2021 3:38pm
Harry property jv deal
I don't think the details were provided so far. Maybe i missed them. From latest opv md&a and hopefully the format hold well! Option of 80% Interest in the Harry and Outland Silver Bar Properties (the Harry Property) (contd) Consideration to acquire the 80% interest in the Harry Property is as follows: Cumulative Exploration Expenditures: $500,000 on or before September 13, 2022 (the Year 1 expenditures); a further $1,000,000 on or before September 13, 2023 (the Year 2 expenditures); a further $1,500,000 on or before September 13, 2024 (the Year 3 expenditures); a further $2,000,000 on or before September 13, 2025 (the Year 4 expenditures); a further $4,000,000 on or before September 13, 2026 (the Year 5 expenditures). All exploration expenditures are on a make or pay basis, meaning the Company shall either make the required expenditures, or pay the Optionor in cash for any shortfall within 30 days of the period during which the expenditures were required. Cash Payments: $50,000 on TSX Venture Exchange approval of the agreement; a further $75,000 on or before the earlier of September 13, 2022 and the date that is 30 days after the date that the Year 1 expenditures are incurred; a further $100,000 on or before the earlier of September 13, 2023 and the date that is 30 days after the date that the Year 2 expenditures are incurred; a further $150,000 on or before the earlier of September 13, 2024 and the date that is 30 days after the date that the Year 3 expenditures are incurred; a further $400,000 on or before the earlier of September 13, 2025 and the date that is 30 days after the date that the Year 4 expenditures are incurred; a further $725,000 on or before the earlier of September 13, 2026 and the date that is 30 days after the date that the Year 5 expenditures are incurred. Share Issuances: 200,000 shares on TSX Venture Exchange approval of the agreement; a further 300,000 shares on or before the earlier of September 13, 2022 and the date that is 30 days after the date that the Year 1 expenditures are incurred; a further 300,000 shares on or before the earlier of September 13, 2023 and the date that is 30 days after the date that the Year 2 expenditures are incurred; a further 700,000 shares on or before the earlier of September 13, 2024 and the date that is 30 days after the date that the Year 3 expenditures are incurred; a further 1,000,000 shares on or before the earlier of September 13, 2025 and the date that is 30 days after the date that the Year 4 expenditures are incurred; a further 1,500,000 shares on or before the earlier of September 13, 2026 and the date that is 30 days after the date that the Year 5 expenditures are incurred. Upon exercise of the option by the Company, the parties will enter into a joint venture agreement for the operation of the Harry Property with the Company being the operator. The Company will grant the Optionor a 2% net smelter return royalty.