Battle Mountain News
Waseco negotiates Battle Mtn Ridge royalty reduction
2016-05-18 10:09 ET - News Release
Mr. Richard Williams reports
WASECO RESOURCES RENEGOTIATES BATTLE MOUNTAIN RIDGE LEASE AND ADVANCE ROYALTY
Waseco Resources Inc. has negotiated a reduction of the annual advance royalty payable on the Battle Mountain Ridge gold property in Nevada, and settled the current lease payments, and the current and coming year's advance royalty payment for shares. The preceding is subject to regulatory approval.
The annual advance royalty will be reduced from $75,000 (U.S.) annually to $50,000 (U.S.), starting in year three. The current annual advance royalty and the outstanding lease obligations have been settled by way of a shares-for-debt issuance of 1.5 million common shares at five cents per share, plus 750,000 share purchase warrants, exercisable at 7.5 cents for two years from the date of regulatory approval. Next year's advance royalty will be satisfied by the payment of $10,000 (U.S.) at the time of the share-for-debt settlement and a further $20,000 (U.S.) payment on March 17, 2017. The leaseholder has agreed to waive the next $5,000 (U.S.) lease payment, which is due in August, 2016.
Company president, Richard Williams, stated: "The Battle Mountain Ridge property is a very prospective exploration play, both because of its location on the prolific Battle Mountain trend and the results achieved to date on the property. Our last drill program was successful in intersecting high-grade gold, and providing supporting information for our exploration model. A follow-up program has been prepared and hopefully market conditions have improved sufficiently to allow us to finance and complete this program. The reduction in the advance royalty payments should facilitate this task."
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