The option allows BRW to acquire a 100% interest in the Property, from a private prospector, for a total consideration of $700,000 in cash over a 4-year period upon closing of the formal agreement, under the following terms:
- A cash payment of $35,000 within five (5) business of the Effective Date of the Agreement;
- A cash payment of $50,000, on or before the 1st year anniversary of the effective date
- A cash payment of $150,000, on or before the 2nd year anniversary of the effective date
- A cash payment of $200,000, on or before the 3rd year anniversary of the effective date
- A cash payment of $300,000, on or before the 4th year anniversary of the effective date
In order to exercise the Option, Brunswick Exploration shall fund an aggregate amount of $1,000,000 in Work Expenditures in accordance with the following schedule:
- An aggregate of $50,000, on or before the 1st year anniversary of the Effective Date
- An aggregate of $200,000, on or before the 2nd year anniversary of the Effective Date
- An aggregate of $400,000, on or before the 3rd year anniversary of the Effective Date
- An aggregate of $1,000,000, on or before the 4th year anniversary of the Effective Date
Brunswick Exploration will grant a 2% NSR of which half of the NSR may be repurchased by BRW for $1,000,000. Following repurchase, the Project would have a residual encumbrance of 1% NSR, and BRW will retain a right of first refusal on the disposal or sale of any portion of the residual NSR.
