Canyon Copper has entered into a limited forbearance agreement with Falcon Gold in connection with the late payment of the 2016 Bureau of Land Management fees, the 2015 annual lease payment of $30,000 on the patented claims and the 2015 option payment of $20,000 due under the option agreement with Falcon.

Under the terms of the Agreement, Canyon has agreed not to exercise its rights to terminate the Option Agreement with Falcon as a result of Falcon’s failure to pay the 2016 BLM Fee, the 2015 Lease Payment or the 2015 Cash Option Payment provided that Falcon:

  • issues and delivers to Canyon the 750,000 common shares of Falcon issuable to Canyon as the first and second anniversary share issuances under the Option Agreement;
  • pays to Canyon the 2016 BLM Fee and Canyon’s legal fees in connection with the 2016 BLM filings on or before September 30, 2015; and
  • pays to Canyon the 2015 Cash Option Payment and the 2015 Lease Payment on or before September 30, 2015;

If Falcon fails to make the above payments and share issuances on the dates set forth above, Canyon will be entitled to terminate the Option Agreement.