Aston Bay Holdings Ltd. (TSXV:BAY) today announced that it has now met the conditions precedent of the recently announced memorandum of understanding with a 100 percent owned subsidiary of Antofagasta plc. The conditions precedent related to an amendment to the underlying agreement with Commander Resources Ltd..
As quoted in the press release:
In order to accommodate the involvement of Antofagasta, Aston Bay and Commander have agreed to an amendment (“Amendment”) to the Option Agreement that was signed in November 2011, as previously amended, relating to the Storm Project in Nunavut (“Option Agreement”). Aston Bay may now elect to exercise the buy-out option (“Buy-Out Option”) in the Option Agreement for either CDN$15 million or 20% of Aston Bay’s market cap, after the Company has exercised the First Option and earned 50.1% of the property. Aston Bay will have until December 31, 2016 to spend CDN$6 million in exploration on the property and to exercise the First Option. In recognition of the continuing difficult capital markets for funding of exploration projects, and the lack of adequate time to prepare for a large program in 2014, Commander accepts that the work program for 2014 will be primarily aimed at the setting up and positioning of equipment for a larger program in 2015.