RE:PotentialThis could work out, but it is a very high risk move by Sitka. The cash terms are extremely taxing for a $45 million market cap company; it is giving away about 5% of the company a year for three years. In addition, they will need additional funds to undertake actual exploration.
In a sense, it looks like Cor is betting the company on what he expects to find on the Victoria land package. Sitka probably has a well-informed hypothesis, but it is not yet proven. I have to assume, that Sitka sees the Victoria land as more valuable than the current Sitka land, but together, they will make a complete package.
Victoria essentially ensures that they will be in the driver's seat to buyout Sitka down the line. In the interim, they can let Sitka progress this project forward.