Intrepid Metals Corp. (TSXV: INTR | OTCQB: IMTCF) has announced additional details on its option agreement to acquire a 100% interest in the MAN Property from Mining and Mineral Opportunity Ltd. (MMO). The agreement is dated 11 September 2023 and is between wholly owned subsidiary Intrepid Metals (USA) Corp. and MMO.
The terms give Intrepid the option to acquire a 100% interest in the property in return for certain cash and common share payments to MMO. There is also a 1.0% net smelter royalty (NSR) granted under the agreement. 50% of the NSR may be repurchased for US$1M thereby reducing it to 0.5%.
If the company completes a preliminary economic assessment on the property, it will make a US$250,000 payment to MMO and the option will be deemed to be partially exercised and 51% of the earned interest will automatically vest.
In addition, if the company issues shares at a price below US$0.12, then any unissued shares owed to MMO will be adjusted by a proportional amount. This adjustment shall not apply to issuances under equity compensation plans or for asset or company acquisitions. Instead of issuing additional shares because of this adjustment, at each milestone payment date the company shall instead make an additional cash payment calculated using the amount of additional shares multiplied by the issue price of the shares that triggered the adjustment.
Intrepid will take over as operator of the property and will be responsible for future exploration work and maintaining the Properties in good standing. MMO is arm’s length to the company and there are no finder’s fees payable in connection with transaction. The agreement remains subject to the approval of the TSX Venture Exchange (TSXV).
For further information, please visit: www.intrepidmetals.com
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