If they go through witht he deal as written and the company's share price appreciates like we think it will, it is going to be one costly piece of dirt.
Option agreement terms
In order to acquire a 100-per-cent undivided interest in the property, Orbite is required to:
- Make a payment of $150,000;
- Incur total exploration expenditures on the property of $1-million by Dec. 31, 2013, including costs related to a National Instrument 43-101 technical report;
- Deliver an NI 43-101 technical report by Dec. 31, 2014;
- If Orbite decides to exercise the option, issue 2.4 million Orbite common shares by Jan. 1, 2016, vesting in tranches of 10 per cent every six months following the date of issuance. The option agreement remains subject to the approval of regulatory authorities, including the Toronto Stock Exchange.
Additional disclosure regarding grade estimates of alumina