Pursuant to the Agreement, Ero can acquire a 100% interest in the Properties by paying to Soma up to
- Cash payments:
US$250,000 on signing of the Agreement;US$100,000 on or before five business days afterSeptember 6, 2023 ; andUS$100,000 on or before five business days afterSeptember 6, 2024 .- Phased exploration expenditures:
US$1,200,000 on or beforeSeptember 6, 2023 ;US$250,000 on or beforeSeptember 6, 2024 ; andUS$250,000 on or beforeSeptember 6, 2025 .- Final option payment of
US$6,000,000 in cash or common shares in the event that Soma has exercised the Buy-Back Option (defined below), orUS$3,000,000 in cash or common shares in the event that Soma has failed to exercise the Buy-Back Option (as defined below), on or beforeSeptember 6, 2025 .
Soma entered into a separate agreement with the former owners of certain mining rights within the Properties providing Soma an option (the "Buy-Back Option") to acquire the former owners' 1% net smelter returns royalty ("NSR") from the mining rights held by the former owners and to extinguish the former owners' right to a
Upon Soma having exercised the Buy-Back Option and Ero having exercised the Option to acquire a 100% interest in and to the Properties, Soma will be entitled to receive a 1.5% NSR, subject to Ero retaining the exclusive right and option to repurchase a 1.0% NSR by paying to Soma
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On behalf of the Board of Directors
Chief Executive Officer and President
Neither
All statements, analysis and other information contained in this press release about anticipated future events or results constitute forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "seek", "anticipate", "believe", "plan", "estimate", "expect" and "intend" and statements that an event or result "may", "will", "should", "could" or "might" occur or be achieved and other similar expressions. Such statements include statements regarding receipt of further funds pursuant to the Option or the exercise of the Option or the Buy-Back Option, which cannot be confirmed as at the current date. Forward-looking statements are subject to business and economic risks and uncertainties and other factors that could cause actual results of operations to differ materially from those contained in the forward-looking statements. Forward-looking statements are based on estimates and opinions of management at the date the statements are made. The Company does not undertake any obligation to update forward-looking statements even if circumstances or management's estimates or opinions should change except as required by applicable laws. Investors should not place undue reliance on forward-looking statements.
SOURCE
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