In October 2009, the Company entered into an option agreement to acquire a 100% interest, (subject to an NSR) in the DS group of claims located approximately 20km west-south-west of Port Renfrew, a deep-water port on the south-west coast of Vancouver Island.
Consideration for a 100% interest in the property is the payment of $50,000 plus 400,000 shares of the company, of which $10,000 plus 100,000 shares was paid upon TSX Venture Exchange approval of the transaction with the remaining share balance becoming payable in 100,000 share increments on the first through third anniversaries of exchange approval. Remaining cash payments become payable as to $10,000 on each of the first through third anniversaries of approval with a final payment of $20,000 becoming due on the fourth anniversary. The property is subject to an NSR of 3% in favor of the vendor, of which the Company has the option to purchase 2 of the 3 percentage points for $500,000 per percentage point, prior to commencement of commercial production.
|
