EAG & NOT Option Conditions Jeez... none of you have done proper research. At the end of the terms, EAG can end up with either 0%, 75% or 100% of the Windfall Lake Property.
From the link: https://www.eaglehillexploration.com/files/EAG_Windfall_Lake_NI_43-101_September_09.pdf
6) At the time of completed BFS or the project has commenced production, the Optionor will
have a ninety (90) day option to either:
i) Convert all of its interest for a 2% net smelter royalty (“NSR”); or
ii) Retain a 25% interest in the Windfall Lake Property and be responsible for its pro
rata costs to go into production and will receive $11.9 million from production after
capital expenditures are repaid and after interest and all operating expenses are made.
7) In the instance where the Optionor chooses to exercise option 6(a), Eagle Hill will have
earned 100% interest in the Windfall Lake Property and the Optionor would maintain a 2%
NSR. Eagle Hill would have the right of first refusal to purchase the 2% NSR if the
Optionor decides to sell this royalty.
8) If a cash call is made to the Optionor from Eagle Hill for production costs and the Optionor
does not make this payment within 90 days, the Optionor’s working interest will be
converted based on a pro rate formula from a 25% working interest to a 2% NSR tied to a
cash call commitment of up to $11.9 million. In other words if the Optionor receives a cash
call for
And you guys should probably also read some of the history of the property of who owned it before, see below for the previous options: https://www.eaglehillexploration.com/investors/news_releases/eagle_hill_to_expand_the_windfall_lake_camp_to_340_contiguous_claims_with_options_to_acquire_freewes/