The property consists of two blocks, block A and block B-collectively named Project 81, in 15 townships in Northern Ontario.
Block A comprises an area of about 58,000 hectares and is one contiguous parcel of land covering 10 townships, adjacent to the Kidd Creek Mine Complex near Timmins, Ontario.
Block B comprises an area of about 2,000 hectares and consists of 35 parcels of land covering five townships around Iroquois Falls and Smooth Rock Falls.
The two blocks of lands are all currently freehold patented lands, and a significant portion of the project area is considered to be productive forestlands.
As per the deal, ROF has agreed that the purchase price for the property will consist of 3,000,000 shares, issuable at closing and $6,500,000 in cash payable at different times over a period of one year from closing.
In addition, AbiBow Canada will be granted a 5% net smelter return royalty (NSR) in connection with the property, with ROF having the right to buy back 2.25% of the NSR at a price of $2,500,000 per percentage NSR.
Under the agreement, ROF has also granted AbiBow Canada a right of first refusal with respect to any timber harvesting proposed to be conducted on the property, and with respect to any timber harvested on the property.
