Canyon Copper agreement with Falcon Gold
2014-08-19 16:20 ET - Property Agreement
Also Property Agreement (C-FG) Falcon Gold Corp
The TSX Venture Exchange has accepted documentation in connection with an option agreement dated June 6, 2014, between Canyon Copper Corp. and Falcon Gold Inc. pursuant to which Canyon has granted Falcon an option to acquire up to an 80-per-cent interest in the New York Canyon project.
Under the terms of the agreement, Falcon may earn an initial 60-per-cent interest in the project upon:
- Making cash payments to Canyon totalling $150,000;
- Issuing Canyon a total of 1.5 million common shares;
- Incurring a total of $2-million of exploration expenditures on the New York Canyon project;
- Granting to Canyon 500,000 share purchase warrants exercisable at 10 cents for a two-year period.
Falcon will also have the right to increase its interest to 80 per cent in the New York Canyon project. In order to exercise the second option, Falcon will be required to issue to Canyon an additional one million common shares and complete a preliminary economic assessment by the sixth anniversary of the agreement.
Under the terms of the agreement, Falcon will also pay Canyon a lease payment of $30,000 per year in connection with the patented claims, and Falcon will be responsible for all BLM filing fees for the unpatented claims.
If Falcon exercises an 80-per-cent interest or elects to proceed with a 60-per-cent interest, the parties will form a joint venture for the purpose of carrying out further exploration and development of the New York Canyon project.
For further information please see the news release dated June 9, 2014, which is available under Canyon's profile on SEDAR.
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