Finally some real news, Kennecott
This is significant
VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 05/04/15 -- Eurasian Minerals Inc.(EMXX) (the "Company" or "EMX") (NYSE MKT:EMXX) is pleased to announce the signing of an Exploration and Option to Purchase Agreement (the "Agreement"), through its wholly owned subsidiary Bronco Creek Exploration, for the Superior West porphyry copper project with Kennecott Exploration Company ("Kennecott"), part of the Rio Tinto Group. The project is located adjacent to the Resolution porphyry copper project within the Superior Mining District, approximately 100 kilometers east of Phoenix, Arizona. Please see www.eurasianminerals.com for more information.
Commercial Terms Overview. Pursuant to the Agreement, Kennecott can earn a 100% interest in the project by making a cash payment upon execution of the Agreement of US$149,187, and thereafter completing US$5,500,000 in exploration expenditures and paying annual option payments totaling US$1,000,000 before the fifth anniversary of the Agreement.
Upon exercise of the option EMX will retain a 2% NSR royalty on the properties. Kennecott has the right to buy down 1% of the NSR royalty covering 14 claims which are optioned (the "Optioned Claims") from underlying claim holders by payment of US$4,000,000 to EMX. Except with respect to the Optioned Claims, the EMX royalty is not capped and not subject to buy-down.
After exercise of the option, annual advanced minimum royalty ("AMR") payments are due starting at US$125,000 and commencing on the first anniversary of the exercise of the option. The AMR payments will increase to US$200,000 upon completion of an Order of Magnitude Study ("OMS") or Preliminary Economic Assessment ("PEA"). Kennecott may make a one-time payment of US$4,000,000 to extinguish the obligation to make AMR payments. In addition, if not previously extinguished, total AMR payments after the OMS or PEA milestone payment are capped at US$4,000,000, and all AMR payments cease upon production from the properties.
