Owner
Post by Franko10 ™ on Jan 4, 2008 10:19:52 GMT -5
Terms of the Agreement
Golden Arch has entered into an agreement with 101083503 Saskatchewan Ltd. To acquire he 80% interest in the property by spending $500,000 in work per 20% acquired interest and by issuing 7,000,000 shares in four tranches:
Shares
Upon signing 1,500,000
Within 24 months of regulatory approval 1,500,000
Within 36 months of regulatory approval 1,500,000
Within 48 months of regulatory approval 1,500,000
Within 60 months of regulatory approval 1,000,000
TOTAL 7,000,000
Work Commitment
Within 24 months of regulatory approval $500,000
Within 36 months of regulatory approval $500,000
Within 48 months of regulatory approval $500,000
Within 60 months of regulatory approval $500,000
TOTAL $2,000,000
After Golden Arch completes each tranche of work and share transfer (i.e. after 24, 36, 48, and 60 months as above), it will have earned successive 20% interests in the property.
Upon the property achieving commercial production, the Company will transfer to the vendor an additional 2,000,000 shares for every 20% interest it has earned up to a maximum of 8,000,000 shares. Only one claim has a net smelter royalty of 1%, payable to a third party.
Golden Arch will be the operator while it is still earning an interest and after, if it has the largest interest, and will be entitled to charge a 10% management fee on all expenditures on the property. After the first $500,000 work program is completed, the vendor is required to contribute to cash calls as a participating 20% joint venture partner in order to retain its 20% working interest in the property. Any party, which does not contribute to the work program as required by the operator, will lose 5% interest in the property for every $125,000 of non-contribution, which is funded by the other party.
The agreement was approved by the TSX Venture Exchange on March 1, 2007.
Golden Arch has entered into an agreement with 101083503 Saskatchewan Ltd. To acquire he 80% interest in the property by spending $500,000 in work per 20% acquired interest and by issuing 7,000,000 shares in four tranches:
Shares
Upon signing 1,500,000
Within 24 months of regulatory approval 1,500,000
Within 36 months of regulatory approval 1,500,000
Within 48 months of regulatory approval 1,500,000
Within 60 months of regulatory approval 1,000,000
TOTAL 7,000,000
Work Commitment
Within 24 months of regulatory approval $500,000
Within 36 months of regulatory approval $500,000
Within 48 months of regulatory approval $500,000
Within 60 months of regulatory approval $500,000
TOTAL $2,000,000
After Golden Arch completes each tranche of work and share transfer (i.e. after 24, 36, 48, and 60 months as above), it will have earned successive 20% interests in the property.
Upon the property achieving commercial production, the Company will transfer to the vendor an additional 2,000,000 shares for every 20% interest it has earned up to a maximum of 8,000,000 shares. Only one claim has a net smelter royalty of 1%, payable to a third party.
Golden Arch will be the operator while it is still earning an interest and after, if it has the largest interest, and will be entitled to charge a 10% management fee on all expenditures on the property. After the first $500,000 work program is completed, the vendor is required to contribute to cash calls as a participating 20% joint venture partner in order to retain its 20% working interest in the property. Any party, which does not contribute to the work program as required by the operator, will lose 5% interest in the property for every $125,000 of non-contribution, which is funded by the other party.
The agreement was approved by the TSX Venture Exchange on March 1, 2007.
