Grizzly Discoveries Inc. said March 27 that it signed a letter of intent with a private group to purchase the Robocop cobalt-copper-silver property in British Columbia.
The property consists of mineral claims totaling 9,891 acres.
Under the deal terms, Grizzly is required to issue 2,000,000 units, with each unit consisting of 1 share and 1 transferable share purchase warrant. Each warrant is exercisable to acquire an additional share at 14 cents for a period of 3 years.
The property is subject to a 3% net smelter return royalty, while Grizzly will have the right to purchase up to 2% of the NSR within two years, after the delivery of a positive feasibility study on the property, for C$1.5 million.
The company will now conduct due diligence and work with the vendors to enter a definitive agreement.