Re-reading this agreement with WSR gets me pretty psyched that WSR has a choice piece of ground. There is no way they would agree to expend 1.5 million in exploration costs in the first year if they did not. Of course, their success will be great for NOT as well and will help NOT and the entire ring of fire. There was a lot of discussion on this board at the time this first option was granted that the granted claim blocks were not prime. I continue to disagree for two reasons.
1. It was the first option so granted, so likely a good one. NOT would want to grant options on land they expected good results on. For WSR to fail would not help NOT plans or profits.
2. As stated above, WSR takes on some pretty hefty expenditures and responsibilities. I doubt that they would do so without real promise.
BK
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On November 1, 2007, WSR Gold Inc. (“WSR”) and Noront entered into an option agreement pursuant to which WSR has been granted the option to acquire a 50% legal and beneficial interest in a property. The area will include 15 Claim Blocks, approximately 4,400 hectares (9,600 acres) in the “Ring of Fire”, McFauld’s Lake, Ontario, near Noront’s nickel copper discovery.
In order to acquire its interest in the property, WSR is required to:
1.Issue to Noront an aggregate of 400,000 common shares on both parties receiving all required approvals including TSX Venture Exchange and Board of Directors approval of the Option Agreement;
2. Incur aggregate exploration expenditures on the property of $5,000,000 over a three year period (of which $1,500,000 must be expended in the first year);
3. Make cash payments to Noront totaling $400,000 within two years of receiving the above noted approvals of the Option Agreement (of which $200,000 must be paid in the first year, and any portion of the aggregate of $400,000 may be satisfied at the option of Noront, by the issuance to Noront of up to 800,000 common shares of WSR at a deemed price of $0.50 per share)....
Upon WSR earning its 50% interest in the property, WSR and Noront shall form a joint management committee to further develop the property and Noront shall act as Operator.
