Golden Valley Mines Mines granted an option to Alexandria Minerals Corporation to acquire an 80% interest in the Centremaque Property (see press release dated April 25, 2017).
Alexandria Minerals may earn 80% in the property by issuing treasury shares of Alexandria Minerals to Golden Valley Mines over a four year period from date of signing with a total value of $250,000, and by conducting exploration activities totalling $4 million over the same four year period, of which $250,000 is to be spent in the first year of the option agreement. The price of the shares, and therefore the number of shares to be issued, is determined by reference to the market price at the time each tranche is due.
Upon the 80% earn-in, Golden Valley Mines and Alexandria Minerals will form a Joint Venture to further explore, and if warranted, develop the property. Once the 80% interest is vested for Alexandria Minerals, Golden Valley Mines will have a 20% free-carried interest, which means that Golden Valley Mines shall not be responsible for any project costs, including without limitation, construction costs, exploration costs, mine costs and operating costs on the property, until the commencement of commercial production. In addition, Golden Valley Mines retains a 1.5% Net Smelter Return, of which 0.5%, or a third, may be purchased by Alexandria Minerals for $1,000,000.