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Redhawk Resources, Inc. (CVE:RDK) announced the Company through its wholly owned US subsidiary Redhawk Copper, Inc. has entered into an agreement with AMT (USA) Inc. to buyout the 2.25% Net Smelter Royalty retained by AMT as part of the original Copper Creek property acquisition agreement.
Redhawk Resources, Inc. (TSXV:RDK) announced the Company through its wholly owned US subsidiary Redhawk Copper, Inc. has entered into an agreement with AMT (USA) Inc. to buyout the 2.25% Net Smelter Royalty retained by AMT as part of the original Copper Creek property acquisition agreement.
The press release is quoted as saying:
The Agreement requires a payment of $350,000 on court approval and a further $950,000 in quarterly payments over an eighteen month period. The Agreement also calls for a further $500,000 payment should the Company enter into a major transaction during the two year period after closing. AMT is in Chapter 7 bankruptcy and therefore the Agreement remains subject to court approval which is expected within 60 days. Currently the agreement between Redhawk and AMT requires an annual $125,000 advance royalty payment and has a cap of $25 million.
Click here to access the entire press release