The company will receive $40,000 and 1,000,000 shares of Victory Gold for the deal.
Plato Gold can hold Victory Gold 250,000 shares for four months and a day, 250,000 shares for ten months, 250,000 shares for sixteen months, and 250,000 shares for twenty two months.
Victory Gold will now own 40% of the Guibord Property whereas St Andrew will have 10% and Plato will retaining control of the remaining 50%.
The agreement between the companies also provides options to both Victory and St Andrew to own the property.
Victory Gold has an option to own a 60% interest in the Guibord Properties by spending a at least $700,000 in exploration expenditures on the property and paying $100,000 to Plato in cash or Victory Gold shares at Plato’s option by the third anniversary of the agreement.
If Victory exercises the option then it would own 60% interest in the property, St Andrew will have 15% interest and Plato will own 25%.
Victory Gold should notify both Plato and St Andrew if it intends to exercise the option and if does not elect to exercise the option then St Andrew has an option.
St Andrew will have to spend at least $200,000 in exploration expenditures on or before the third anniversary of the agreement and
Plato receives from Victory Gold $100,000 in cash or Victory Gold shares, at Plato’s option.
If the St Andrew exercises the option then the ownership of the property will have 50% share with Victory Gold where as St Andrew and Plato both will own 25% each.
A 2% NSR will remain with the property of which 1% can be repurchased for $500,000.
Plato is a Canadian gold exploration company.
