Amarc Resources Ltd. said Dec. 9 that it will purchase outright the 51% interest in the Pine copper-gold property in British Columbia held by Gold Fields Toodoggone Exploration Corp.
Under the agreement, the Toronto-listed junior explorer will issue 5 million shares, plus an additional 2 million shares upon reaching certain future expenditure levels. Amarc was previously obliged to issue shares and commit to exploration expenses on the property.
The vendor, a unit of Gold Fields Ltd., will retain a 2.5% net profits interest royalty on mineral claims comprising most of the property, which can be halved for a payment of C$2.5 million in cash or shares. A 1% net smelter returns royalty is applicable over the remaining claims, which can be reduced to a 0.5% NSR for a C$2.5 million payment in cash or shares.
The deal will result in Amarc securing full control of the Pine mineral claims, which host the Pine and Mex deposits.
Meanwhile, Amarc agreed to acquire a claim within the Joy tenure from two prospectors for C$5,000 and the grant of a 1% NSR, capped at C$500,000 payable from commercial production.
It also resolved the default on a C$1 million loan made by a company director and significant shareholder in 2014 by striking a new loan agreement at the same amount, carrying a 10% interest rate and repayable within five years, or earlier in the event of a default or certain financing conditions. Amarc will issue the director 16 million options to purchase shares at 5 Canadian cents apiece within five years.