West Point Gold Corp V.WPG

Any day now Kinross stepping in

[Time4gold]

The terms of the Agreement include:

• Initial cash payments and cost reimbursements from Kinross totaling US$50,000.
• A commitment to purchase up to 9.9% of the issued and outstanding shares of Gold79 on a partially diluted basis (for no greater than US$200,000).
• Kinross will make ongoing lease payments of US$75,000 per year for the term of the agreement, the first payment of which is due within 30 days of closing.
• Kinross is required to spend US$600,000 in exploration work and will be responsible for making the payments to keep the unpatented claims in good standing.
• During the term of the agreement, Kinross has the option to acquire 70% of the project for a cash payment of US$5,000,000 to Gold79 and form a joint venture LLC, and a second option to acquire an additional 10% of the project for a further payment of US$5,000,000 to Gold79.
• The term of the Agreement is four years commencing from receipt of the pending drill permit, with a potential extension of up to two years, subject to certain conditions.
• If an LLC is formed, in the event that either party is diluted below 10%, its interest converts to a 1% net smelter returns (NSR) royalty.