Letter of Intent with BHP Billiton
In January 2016, Aston Bay signed a letter of intent with BHP Billiton. A definitive agreement is targeted for completion by end of Q2 2016. Details include:
BHP Billiton may earn a 75-per-cent interest in Storm.
BHP Billiton to spend a minimum of $40 million on exploration at Storm within nine years of signing a definitive agreement, with a minimum $2.5m in the first two years.
Aston Bay has no required exploration expenses for four years from the date of signing a definitive agreement.
Aston Bay holds a GOR of 0.3% on all mineral claims covered by the LOI outside of area of mutual interest with Commander Resources Ltd.
Early Works agreement in place: permitting, procurement and logistics activities underway in preparation for a Summer 2016 exploration program that includes drilling.
Definitive agreement targeted for completion by end of Q2 2016.
Consolidation Agreement with Commander
In December 2015, Aston Bay agreed with the original property vendor and optioner, Commander Resources Ltd, to consolidate ownership of the underlying core landholdings for the Storm Copper property.
Under the terms of the new Consolidation Agreement, Aston Bay will issue 11m shares to Commander for a 100% interest in the core landholdings.
- Aston will also issue up to an additional 5.5m shares to Commander (to bring Commander’s holdings at the time of issue up to 25% of the Company) upon the earlier of the following:
- The completion of a total of $6 million of exploration expenditures on the Storm property (including amounts already spent); or alternatively
- The completion by Aston Bay of another $4 million of fundraising.
The initial 11m shares will be subject to a four-year escrow, to be released in instalments of 25 per cent per year, beginning one year after the closing of the agreement; any additional shares issued will also be released from escrow on the fourth anniversary date.
Commander will retain a 0.875% GOR. Aston Bay has an option to buy the GOR down to 0.4% with a one-time payment.