TORONTO (miningweekly.com) – Alaska-focused explorer Graphite One Resources has extended the deadline to buy out the 2% net smelter return (NSR) royalty related to certain of its mining claims in the sate by up to 24 months.
Under an agreement dated January 24, 2012, the company’s subsidiary Cedar Mountain Exploration bought from a vendor 28 mining claims, subject to a 2% NSR royalty when the mine reached production.
Cedar Mountain originally had the right to repurchase the royalty within three years from the effective date of the original agreement, on or before January 24, for C$1-million. This had now been extended to January 24, 2017, or to a date six months after either Graphite One or Cedar Mountain had completed a feasibility study on the Graphite Creek property.
In return for extending the royalty buyback, Graphite One would, subject to TSX-V approval, issue the vendor with 769 231 common shares at C$0.13 apiece.