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Kodiak Exercises Hercules Option |
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Wednesday, 28 July 2010 00:57 |
Kodiak Exploration Limited (KXL.V) announce that it has fully exercised its option to acquire the Hercules property.
As a result, Kodiak now holds a 100% interest in the property, which includes the Golden Mile vein, subject to a 3% net smelter returns royalty. The Company has the right and option to purchase up to one-third (i.e. 1%) of the royalty for $2,000,000 for the next two years.
The Hercules option was originally acquired by the Company in 2006, and the Company’s filing in respect of the option agreement was accepted by the TSX Venture Exchange on July 25, 2006. The Company paid $50,000 in cash and issued 200,000 shares to the optionors upon receipt of Exchange acceptance in 2006, and paid an aggregate of an additional $240,000 in cash and issued an additional 1,050,000 shares in three installments during 2007, 2008 and 2009. Due to administrative inadvertence, the Company did not seek Exchange acceptance in respect of those three intermediate payments. The Exchange has now accepted the Company’s filing in respect of all option payments and the final payment of $250,000 in cash and 500,000 shares has now been made. |
