Anteros Metals options Knob Lake to arm's-length party

Executive Summary

• Anteros Metals Inc. entered into a mining option agreement with an arm's-length party to grant an option to acquire up to an 85% interest in its Knob Lake property located in Newfoundland and Labrador.
• The optionee can earn the property interest through a series of four cash payments totaling $1.2 million, tied to optional milestones including a Preliminary Economic Assessment, regulatory permitting, and commencement of commercial production.
• The transaction remains subject to all necessary regulatory approvals, including approval from the Canadian Securities Exchange.

Key Details

• Transaction Type: Mining option agreement for the Knob Lake property (Newfoundland and Labrador).
• Counterparty: Arm's-length party (unnamed).
• First Payment & Earn-in: $100,000 cash within 30 days of effective date; optionee earns 25% interest.
• Second Payment & Earn-in: $314,992 cash on or before the 3rd anniversary; optionee earns additional 50% interest (75% total). Optionee may elect to complete a Preliminary Economic Assessment (NI 43-101).
• Third Payment & Earn-in: $314,992 cash on or before the 5th anniversary; optionee earns additional 10% interest (85% total). Optionee may elect to obtain all necessary regulatory approvals, permits, and agreements (including indigenous benefit and rail agreements) to commence mine construction.
• Fourth Payment Milestone: $470,016 cash on or before the 7th anniversary; optionee may elect to commence commercial production.
• Royalty: Upon first payment, optionee grants Anteros a 0.5% Net Smelter Return (NSR) royalty on the property.
• Total Potential Consideration: $1,200,000 across four payments.
• Maximum Interest Earned: 85%.
• Conditions Precedent: Subject to regulatory approvals, including Canadian Securities Exchange approval.