Mountain Lake Minerals Inc. (CNSX:MLK) amended the terms of the two net smelter returns royalty agreements on the Goodwin Lake Property in New Brunswick. Provisions for an option for Mountain Lake or its assigns to buy-down of one-half of each NSR were added to the terms.
As quoted in the press release:
The parties have agreed to amend the terms of the NSR agreements adding provisions for an option for Mountain Lake or its assigns to buy-down of one-half of each NSR as follows:
- In consideration of the payment of CAD $10,000 to each of the NSR Holders (the “Buy-Down Option Price”) payable as set forth below, Mountain Lake or its assigns will have the right to acquire at any time from the NSR Holders, one-half of each NSR (thereby reducing each NSR from 1% to 0.5%), upon notice in writing and payment to each of the NSR Holders of the sum of Five Hundred Thousand Dollars CAD $500,000.
- Mountain Lake will pay the Buy-Down Option Price to the NSR Holders, and each of the NSR Holders will accept payment by the issuance of $10,000 worth of common shares in the capital stock of Mountain Lake at a deemed price equal to the volume weighted average trading price (“VWAP”) of Mountain Lake’s common shares as traded on the CNSX, provided however that the VWAP cannot in any event be less than $0.10 per share (or, in other words, up to a maximum of 100,000 shares for each NSR Holder).