Property AgreementWhat does anyone make of this?
Dot
009-10-02 17:03 ET - Property Agreement
The TSX Venture Exchange has accepted for filing a mineral propertyacquisition agreement dated Aug. 31, 2009, between Ken Fenwick, GeorgeLucuik, Don Devereaux and Ultra Lithium Inc. The company has agreed toacquire a 100-per-cent interest, subject to a 2-per-cent net smelterreturn royalty, in seven mineral claims located in Crescent Laketownship, Ontario. In consideration the company will spend $226,800 onexploration of the property and pay $112,000 and issue 400,000 sharesto the vendors as follows:
- Pay $12,000 to the vendors on signing the agreement (paid);
- Pay $20,000 to the vendors on the first anniversary of the agreement date;
- Pay $30,000 to the vendors on the second anniversary of the agreement date;
- Pay $50,000 to the vendors on the third anniversary of the agreement date;
- Issue 100,000 shares to the vendors upon exchange acceptance;
- Issue 100,000 shares to the vendors on or before the first anniversary of the acceptance date;
- Issue 100,000 shares to the vendors on or before the second anniversary of the acceptance date;
- Issue 100,000 shares to the vendors on or before the third anniversary of the acceptance date;
- Spend $32,400 on exploration of the property during the first year;
- Spend $32,400 on exploration of the property during the second year;
- Spend $64,800 on exploration of the property during the third year;
- Spend $97,200 on exploration of the property during the first year.
Commencing on the fourth anniversary of the agreement date, apreproduction royalty of $10,000 per year will be payable to thevendors and deducted against future royalty payments upon thecommencement of commercial production.
The company can repurchase from the vendors 1 per cent of thenet smelter return royalty for $500,000 per 0.5-per-cent net smelterreturn royalty.