Alexco Resource Corp (AXU)

[dingocub]

Alexco Resource Sells Keno Hill McQuesten Claims to BanyanGoldCorp:

Alexco will have an initial 7.7% equity ownership in Banyan.

The definitive agreements with Alexco and Victoria are expected to be completed by May 1, 2017 and will require board approval and in the case of Alexco, require the consent of Silver Wheaton and the Government of Canada.


http://media.wix.com/ugd/c4a2dc_bb19c1bd427345b79f477c88f09943c5.pdf

Highlights of McQuesten Agreement with Alexco:

Under the terms of the McQuesten non-binding letter agreement with Alexco, it is intended that the parties will negotiate a binding agreement, which will be subject to TSX-V, Government of Canada and Silver Wheaton Corp. approvals, under which Banyan may earn up to a100% interest in the McQuesten property in three (3) stages:

Initial 51% Option Interest - To acquire the initial 51% Option Interest in the Property, the Company is required, over a period of four (4) years, to issue in stages a total of 1.6 million common shares in the capital of the Company, and to incur in stages minimum exploration expenditures totaling $1.6 million on the Property. Banyan will act as the Property’s operator during the initial four-year term and has the option to defer expenditures into a 5th year. Following the earning of the 51% Option Interest, a JV will be formed and Banyan will have the ability to elect to earn an additional 24%.

Additional 24% Interest - In order to earn the Additional 24% Interest, such that Banyan would have an aggregate interest of 75% in the Property, within three (3) years Banyan must spend an additional $1 million in exploration expenditures, deliver a Preliminary Economic Assessment and pay Alexco $600,000 in cash or shares of Banyan. Upon having earned the Additional 24% Interest, Banyan will continue to act as the Property’s operator and may elect to earn an additional 25%.

Additional 25% interest - In order to earn the Additional 25% Interest, such that Banyan would have an aggregate interest of 100% in the Property, within two (2) years Banyan must pay Alexco $2 million in cash or shares, deliver a Pre-Feasibility Study and grant Alexco a 6% NSR royalty with buybacks totaling $7 million to reduce to a 1% NSR royalty on Au and a 3% NSR royalty on Ag.

Alexco will make a strategic investment of $350,000 in Banyan, and will have the right to participate in future financings and have a right to a Board seat as long as it maintains a minimum 10% equity ownership in Banyan. Because of such strategic investment, Alexco will have an initial 7.7% equity ownership in Banyan.

The definitive agreements with Alexco and Victoria are expected to be completed by May 1, 2017 and will require board approval and in the case of Alexco, require the consent of Silver Wheaton and the Government of Canada.