Sanatana Resources Inc has announced the completion of its year one obligations under an earn-in agreement with ArcWest Exploration Inc to explore its Oweegee Dome porphyry copper-gold project in British Columbia's Golden Triangle.
The Vancouver-based mineral exploration company reminded investors that under the earn-in agreement, it can earn an initial 60% interest/first option in the Oweegee project by funding, over four years, cumulative exploration expenditures of $6.6 million and by making staged cash and share payments totaling $500,000 and two million common shares, respectively.
Upon completion of the first option and receipt of an initial interest notice from Sanatana, it will have a 60-day period to elect to earn an additional 20% interest in the Oweegee project, for an aggregate 80% interest or to form a joint venture with ArcWest.
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The company confirmed that it has fulfilled the following year one obligations required to keep the first option in good standing:
- Paid ArcWest an aggregate of $50,000 in cash by December 31, 2021;
- Issued ArcWest with 300,000 common Sanatana shares by December 31, 2021;
- Incurred not less than $600,000 in exploration expenditures on the Oweegee project by November 30, 2021.
Sanatana noted that ArcWest waived the requirement for it to complete the cash payment and share issuance by December 31, 2021, subject to the approval of the TSX Venture Exchange. The TSX approved the completion of the transactions on April 22, 2022, allowing the company to fulfill the obligations.
It said the 300,000 shares were issued to ArcWest at a deemed price of $0.08 per share, being the closing price of its stock on July 20, 2021.
To continue to keep the first option in good standing, Sanatana said it is required to fulfill the following obligations by December 31, 2022:
- Pay ArcWest an additional $50,000;
- Issue ArcWest with an additional 400,000 shares;
- Incur cumulative exploration expenditures on the Oweegee project of not less than $1.6. million, including a minimum of 1,000 meters of drilling.
Sanatana Resources is a mineral exploration and development company with an award-winning technical team and board of directors focused on high-impact properties in Canada.
Contact the author at stephen.gunnion@proactiveinvestors.com