To earn a 60% interest in the property, G4G is required to pay C$50,000 ($51,429) to Almaden immediately upon the execution of the option agreement; and issue 500,000 common shares of G4G to Almaden upon the agreement’s execution.
The company has also to complete an aggregate of $6m in exploration expenditures on the property over a five-year; and make aggregate payments to Almaden of 2.5 million common shares of G4G over five years.
Following G4G earning its 60% interest, G4G may elect to earn a further 10% interest in the property by completing a NI 43-101 compliant bankable feasibility study (BFS) within seven years of the date of the option agreement.
Should G4G not complete a BFS study within this timeframe, G4G would be required to pay Almaden two million common shares of G4G and a 60/40 joint venture would then be entered.
