The option agreement was preceded by a letter of intent between the parties that was signed in October 2010.
Pursuant to this agreement, SRC will receive $350,000 and 1,925,000 shares of International Millennium Mining Corp, the parent company of IMMI, for the NL Project.
The terms of the option agreement provide for payments to SRC over a five-year period with IMMI’s interest in the NL Project vesting at the end of the period.
If the NL Project is determined to be economically feasible, SRC will be required to fund its portion of the operating budget in order to retain its 15% joint venture interest and to acquire a 15% interest in IMMI’s Nivloc Mine project.
In the event that SRC decides not to fund its portion of the budget, its 15% interest will be forfeited, but SRC will be entitled to a 2% net smelter royalty.
The NL Project consists of 18 mineral claims located in Esmeralda County, Nevada, and the Nivloc Mine project consists of 11 mineral claims located contiguous with the NL Project.
