CornerstoneMetals Inc. said April 28 that it has signed a letter of intentwith private interests to earn up to a 100% interest in the gold-silver-lead-zinc-copperproperty in British Columbia.
Cornerstone can acquire the property by paying the owners anaggregate of C$200,000 in cash and issuing an aggregate of 1,100,000 commonshares within five years, subject to a 3% net smelter return royalty.
Starting on the sixth anniversary of the transaction,Cornerstone will pay the owners C$20,000 per year as an advanced NSR paymentuntil commercial production begins. Cornerstone must also issue 500,000 sharesto the owners once commercial production starts.
Cornerstone will be able to pay the owners C$1 million foreach percentage point of the NSR. The advanced NSR payments will be creditedtowards an NSR buyout.