The TSX Venture Exchange has accepted for filing documentation with respect to the option agreement dated May 26, 2023, between the company's subsidiary, 1416753 B.C. Ltd. (SubCo), and an arm's-length party. Pursuant to the agreement, Subco has the option to acquire 100 per cent of five mineral claims in British Columbia.

As consideration, Subco will pay a $10 cash payment and will issue five million common shares of Subco to the optionor by closing and, within 10 days of Subco completing a going-public transaction by June 30, 2024, or such later date as agreed between Subco and the optionor, issue an additional five million common shares of Subco. Subco will also incur $500,000 of exploration expenditures on the properties by Dec. 31, 2023, and an additional $500,000 of exploration expenditures by Dec. 31, 2024. During the term of the agreement, the optionor will act as operator for a management fee.

The optionor will retain a 2.0-per-cent net smelter return (NSR) royalty on certain mineral claims comprising the properties without underlying royalties and Subco holds the right to buy back 1 per cent of the NSR royalty for $1-million. Some of the properties are subject to underlying royalties. The NSR royalties on each of the properties are capped at an aggregate 2-per-cent NSR royalty.

For further details, please refer to the company's news releases dated May 31, 2023, and Aug. 1, 2023.