NorthWest Copper Corp said it has received 267,159 common shares from Alpha Copper Corp, representing the first payment under a property option agreement.
The option agreement was struck in January among Eastfield Resources Ltd, Alpha, and the company.
NorthWest Copper said the common shares have an aggregate value of $250,000 and are subject to a statutory hold period of four months and one day from the date of issuance.
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Under the terms of the option agreement, NorthWest Copper said Alpha may acquire a 100% interest in a series of mineral claims in British Columbia commonly referred to as the "Okeover Copper (molybdenum) Project" (or property).
The deal is also subject to a 2% net smelter return to be retained by the company (the NSR Royalty) by issuing the following additional common shares and incurring the following expenditures:
- Issuing common shares with a value of $500,000 on or before the date which is 12 months from the closing date;
- Issuing common shares with a value of $750,000 on or before the date which is 24 months from the closing date;
- Issuing additional common shares such that NorthWest holds a 10% interest in Alpha on or before the date which is 36 months from the closing date; and
- Incurring staged expenditures of not less than $5 million on or before the date which is 36 months from the closing date.
- The issuance of the next $500,000 in common shares and the first $500,000 in expenditures are obligations of Alpha pursuant to the option agreement.
- The NSR Royalty will entitle the company to a 2% royalty on the sale of all ores, dore, concentrates, metals, minerals, and mineral by-products that are produced or extracted by or on behalf of Alpha from the property, which may be bought down by Alpha by one half with a cash payment of $1 million.
The property is located near Powell River on the southern British Columbia coast. It consists of 12 contiguous claims totaling 4,614 hectares and is beneficially owned 100% by NorthWest, subject to the option agreement.
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