American CreekResources Ltd. said April 13 that it amended the net smelter returnroyalty agreement with third-party holders over its 51% interest in the gold project inBritish Columbia as several parties "expressed an interest" in the property.
The amendment reduces the C$6 million payment obligation, whichwas to be triggered in case the company decided to reduce its interest or grantedaccess for development and tunnel construction.
Under the amendment, the company will issue 15 million commonshares to the royalty holders, which will hold a 2% royalty on one group of mineraltenures and a 1% royalty on the remaining tenures under the company's 51% interest.
Within 30 days of completion of a feasibility study for TreatyCreek, the company will pay C$1.5 million to the royalty holders to buy out 0.75%from the first group and 0.25% of the remaining group.
American Creek may buy out a further 0.75% of the first groupand 0.25% of the remaining group by paying a further C$1.5 million.
The holders will retain a 0.5% royalty on both groups of mineraltenures, and will be entitled to 25% of any consideration received by the companyrelated to the Treaty Creek project.
The agreement is subject to approval by the TSX Venture Exchange.