Aurum Lake signs option to acquire Band-ore property

Executive Summary

• Aurum Lake Mining Corp. has entered into an option agreement with Lipari Mining Ltd. to acquire an exclusive option to earn a 100% interest in the Band-ore property, a 2,115-hectare mining project in Ontario.
• The transaction involves a series of cash and share payments over five years, culminating in a final cash payment of $1.5 million, with the optionor retaining a 2% Net Smelter Royalty (NSR).
• The deal is with a non-arms'-length party (Wes Roberts, a director of Aurum, serves as VP of Business Development for Lipari) and is subject to TSX Venture Exchange approval.

Key Details

• Target Asset: Band-ore property, comprising 16 patented mining claims, one mining claim lease, and 109 staked mining claims in Hagey and Conacher townships, Ontario.
• Property Size: Approximately 2,115 hectares, spanning a 10-kilometre length.
• Earn-In Requirements (Cash):
  • $50,000 on the effective date.
  • $50,000 on each of the first, second, third, and fourth anniversaries of the effective date.
  • $1.5 million on or before the fifth anniversary of the effective date.
• Earn-In Requirements (Shares or Cash):
  • At Aurum's discretion, pay $50,000 cash OR issue 400,000 common shares on the date six months from the effective date.
  • Same option (cash or 400,000 shares) on each of the first, second, third, and fourth anniversaries of the initial share issuance date.
• Royalty Terms:
  • Upon exercise, Lipari retains a 2% Net Smelter Royalty (NSR).
  • Aurum has the option to purchase 1% of the NSR for $3 million, indexed/escalated based on the Canada Consumer Price Index (CPI).
  • Aurum holds a right of first refusal on the remaining 1% NSR.
• Resource Bonus Payments:
  • $500,000 (indexed by CPI) upon declaration of a NI 43-101 compliant mineral resource containing ≥500,000 ounces of gold.
  • Additional $500,000 (indexed by CPI) upon declaration of a NI 43-101 compliant mineral resource containing ≥1,000,000 ounces of gold.
• Related Party Disclosure: Lipari Mining Ltd. is a non-arms'-length party because Wes Roberts, a director of Aurum Lake Mining, serves as Vice-President of Business Development for Lipari.
• Regulatory Status: The agreement is subject to approval by the TSX Venture Exchange.

Notable Quotes

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