The financial terms of the transaction consist of approximately $3,200,000 in cash and stock and a $500,000 work program commitment. A production Net Smelter Royalty (the "NSR") will be retained by the vendor equal to two percent (2%) of the net smelter returns, as per the terms and conditions of the Letter of Intent. The Company shall have a one-time right to purchase fifty percent (50%) of the NSR in the Property for five hundred thousand dollars ($500,000).
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