Canadian Bearclaw Capital has entered into an option agreement with Copper Mountain Mining to acquire up to a 75% undivided interest in and to 25 mineral claims (4,983h) located in British Columbia, Canada.
The Axe property is located in the Similkameen mining division, 20km north of Princeton, British Columbia.
Weststar and Bearclaw currently hold the property as a joint venture (JV), in which the parties hold 70% and 30% interests, respectively.
Under the terms of the agreement, Copper Mountain will incur $3,000,000 of expenditures in exploration activities on the Axe property by the end of the five year earn-in period and has the option to earn a 51% interest in it.
Copper Mountain also has to incur a minimum of $100,000 every year and pay to the company and Weststar: $30,000 on the first anniversary of the commencement date.
The company will pay $50,000, $100,000, $150,000 and $200,000 on the succeeding anniversaries of the contract start date.
A JV will be formed between Copper Mountain, Bearclaw and Weststar once Copper Mountain exercises the option, with the company holding a 51% participating interest, and the company and WESTAR holding 14.7% and 34.3% participating interests, respectively.
Upon exercise of the option, Copper Mountain can acquire an additional 24% undivided interest in the property, thus increasing the stake to 75%, by either completing a feasibility study on the property or incurring no less than $12,000,000 in expenditures on the property.
Bearclaw Capital engages in the acquisition, exploration, development, and production of mineral properties in Canada.