Polar Star Mining Corporation (TSX:PSR) is pleased to announce that it has entered into a binding Letter of Intent option agreement with RedQuest Capital Corporation.
As quoted in the press release:
- The first option requires RedQuest to complete $3.9 million in work commitments on Los Azules over 3 years commencing from the date of completion by RedQuest of a private placement (the “Financing”) and to make cash payments over the same period totalling $350,000 to earn a 51% interest in the Property.
- RedQuest will also grant Polar Star a 1% Net Smelter Return (“NSR”) upon earning the 51% interest and will then have 90 days to make a onetime election to purchase half of the 1% NSR for US$500,000 in cash.
- The duration of the next 3 options is five years from the third anniversary of the completion of the Financing and will be solely at RedQuest’s expense; as follows: by completing a Preliminary Economic Assessment under the Second Option, RedQuest will earn a 61% interest; by completing a Prefeasibility Study under the Third Option, RedQuest will earn a 66% interest; and by completing a Feasibility Study under the Fourth Option, RedQuest will earn a 75% interest.