Option Agreement - Willow Property
On February 15, 2017 Abacus announced the signing of an option agreement with Almadex Minerals Limited and its wholly-owned Nevada subsidiary Almadex America Inc. to acquire the exclusive right and option to earn up to a 75% undivided ownership interest in the Willow property in Nevada. The option agreement provides for Abacus to earn an initial 60% ownership interest in the property, following which an additional 15% interest may be acquired, at which stage a joint venture agreement between Abacus and Almadex would be established.
Under the terms of the Option Agreement, Abacus may acquire up to a 75% interest in the Willow property in two stages:
- Initial 60% Option Interest - To acquire the initial 60% option interest in the property, the Company is required, over a period of five years, to issue in stages a total of 2,500,000 common shares in the capital of the Company, and to incur in stages minimum exploration expenditures totaling US$3,000,000 on the property.
- Upon having earned the 60% option interest in the property and until the 10th anniversary date, Abacus will be required to incur minimum exploration expenditures on an exploration program on the property of US$500,000 per year. Abacus will act as the Property's operator during the initial five-year term and following the earning of the 60% option interest, until such time as a joint venture is established, as described below.
- Additional 15% Interest and Forming of Joint Venture - In order to earn the additional interest, such that Abacus would have an aggregate interest of 75% in the property, Abacus will be required to deliver a Feasibility Study on the property to Almadex on or before the 10th anniversary date. Upon having earned the additional interest, Abacus will continue to act as the property's operator until such time as a 75:25 joint venture is established for the further management, exploration and development of the property.