Allied Copper Corp. (CPR) announces the optioning of the Klondike Property located in Colorado.
The Klondike Property consists of 76 unpatented mining claims, a state of Colorado Exploration Permit, and an exclusive right to a state lease.
Allied Copper will earn an aggregate of $4.75 million in exploration expenditures on the property, with at least $500,000 to be spent prior to the first anniversary of the closing date.
Allied will issue 7 million common shares and make an aggregate of $400,000 in cash payments to the alliance over a three-year period.
After completing the option agreement obligations, the alliance will transfer 100 per cent interest in the Klondike Property to Allied.
Allied will also issue 3 million warrants exercisable for a three-year term at a price equal to the 10-day volume-weighted average price of Allied’s common shares.
The alliance will retain a 2 per cent net smelter royalty which is subject to a buy-down provision where Allied may repurchase half of the royalty for $1.5 million within 30 days of commercial production.
If Allied Copper files a technical report establishing the existence of a resource on any portion of the Klondike Property of at least 50 million tonnes of either copper or copper equivalent at a minimum cut-off grade of 0.50 per cent copper or copper equivalent and categorized as a combination of inferred resources, indicated resources and measured resources, then Allied will also issue a further 3 million warrants.
The warrants will be exercisable for a three-year term at a price equal to the 10-day volume-weighted average price of Allied’s common shares at the time of the issuance.
Allied Copper Corp. (CPR) is up 6.52 per cent and is trading at $0.25 per share as of 1:50 p.m. EST.