Crystal Exploration Inc. said March 22 that it signed a letter of intent with PPM Phoenix Precious Metals Corp. for an option to earn up to a 75% interest in the Lawyers gold-silver property in British Columbia.
Under the deal, it may earn an initial 51% by issuing 1 million shares and incurring a C$5 million spend on the property within three years. The company may then earn an additional 9% by issuing 2 million shares and incurring a C$2.5 million spend on the property within three years. It may then earn 15% more by issuing 1 million shares and incurring a C$1.5 million spend on the property within another three years.
Crystal and PPM Phoenix may form a joint venture to develop the property, with the former as the designated operator. In the event that Crystal earns a 75% interest, PPM Phoenix may elect to sell its 25% interest to the former.
Should either company fail to contribute towards the exploration and development of the property, their stake would be converted to 2.5% net smelter returns royalty, with an option to buy-down a 1% NSR for C$1 million.
Crystal said it will also seek to conduct a C$3 million placement and a 1-for-3 share consolidation. The letter of intent is subject to conditions, including the appointment of John Williamson as Crystal's CEO and the approval of the share consolidation.