Graphite One Extends Deadline to Buy Out 2% NSR Royalty

Graphite One Resources Inc. (TSXV:GPH) announced the extension of the deadline to buy out the 2% net-smelter-return royalty applicable to certain of its mining claims in Alaska to Jan. 24, 2017. Wholly owned subsidiary, Cedar Mountain Exploration (Alaska) Inc., and the claim owner entered into an extension agreement whereby the royalty purchase option may be exercised at any time on or before the earlier of (i) Jan. 24, 2017, or (ii) the date that is six months after the release by the company or Cedar Mountain of a feasibility study on the Graphite Creek property.

By agreement dated Jan. 24, 2012, the company’s wholly owned subsidiary, Cedar Mountain Exploration (Alaska) Inc., purchased from a certain individual vendor 28 mining claims in the state of Alaska. These claims are subject to a 2-per-cent net-smelter-return royalty when the mine reaches production. Pursuant to the original agreement, Cedar Mountain had the right to purchase the royalty within three years from the effective date of the original agreement (on or before Jan. 24, 2015), for $1-million. Cedar Mountain and the company have entered into an extension agreement effective Jan. 24, 2015, whereby the royalty purchase option may be exercised at any time on or before the earlier of (i) Jan. 24, 2017, or (ii) the date that is six months after the release by the company or Cedar Mountain of a feasibility study on the Graphite Creek property.

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