MOU BETWEEN PYROGENESIS AND URAGOLD MOU BETWEEN PYROGENESIS AND URAGOLD
Salient points of the MOU, Including final terms agreed on September 28, 2015 are:
· Uragold paid $207,000 to PyroGenesis for a series of metallurgical test of our quartz, including material not suitable to produce Silicon metal using the traditional approach.
· PyroGenesis has granted Uragold a worldwide exclusive right to the usage of the PUREVAP ™ Quartz Vaporization Reactor technology in return for 10% of sales royalty payments
· In order to maintain its Exclusive Global Right, Uragold will need to make the following minimal payments to PyroGenesis:
· For 2016, the greater of 10% of Uragold sales of Si or $50,000 CAD;
· For 2017, the greater of 10% of Uragold sales of Si or $100,000 CAD;
· For 2018, the greater of 10% of Uragold sales of Si or $150,000 CAD;
· For 2019 and beyond, the greater of 10% of Uragold sales of Si or $200,000 CAD per annum;
· The Parties have agreed that the 2016 payment will be made immediately through the issuance of 1,000,000 Unit of Uragold Capital. Each Unit will be comprised of one (1) common share and one (1) common share purchase warrant (“Warrant") of Uragold. Each Warrant will entitle the holder thereof to purchase one common share of the capital stock of Uragold at an exercise price of $ 0.07 during a period of 36 months from the date of the issuance of the Units. Each Unit issued pursuant to this agreement will have a mandatory four (4) month holding period from the date of the issuance of the Units. The Unit issuance is subject to standard regulatory approvals.