RE:RE:RE:RE:RE:I'm a BUYER TODAY! More I hear Richard The More I Like Him! The Company also entered into the Option Agreement with Heliostar and Compaa Minera Pitalla, which holds the title to the San Antonio Gold Project. Under the terms of the Option Agreement, Heliostar has the Option to earn a 100% interest in and to the San Antonio Gold Project as follows (collectively, the "Option Exercise Price"):
- Making a cash payment to Argonaut of:
- US$80,000,000 in the event the average gold price is below US$1,800 per ounce for the six months preceding Heliostar exercising the Option;
- US$120,000,000 in the event the average gold price is above US$1,800 per ounce but below US$2,000 per ounce for the six months preceding Heliostar exercising the Option; or
- US$150,000,000 in the event the average gold price is above US$2,000 per ounce for the six months preceding Heliostar exercising the Option; and
- Granting Argonaut a 2.0% net smelter return ("NSR") royalty in the event of exercise of the Option (capped at 2.0% for claims with existing NSR considerations).
The term of the Option is for a three year period (the "Term"), provided, however, that the Term may be extended for an additional 18 months in the event Heliostar is