Sphere Resources Inc Enters Option Agreement Over Mining Claims in Scadding, Sudbury, Ontario
The company has recently adopted a new strategy of identifying and appropriating exploration targets in major global mining camps including Sudbury and Red Lake with a particular emphasis on precious metals.
The Company has completed a review of several gold exploration properties in the United States of America and Canada. The company has decided to enter into an initial Option Agreement with respect to Mining Claims at Scadding & Davis Townships, near Sudbury, Ontario.
The Scadding property is located approximately 45 minutes by all season municipal roads from the town of Sudbury in northern Ontario and is immediately flanked by Trueclaim Exploration. The property is proximal to 5 historic mineral showings or mines. The most significant being the Scadding Gold Mine which is approximately 500 metres from Sphere Resources claims and is currently held by Trueclaim Exploration. The Alwyn Porcupine Mine,located on the property, had some limited gold production. See attached map.
The Company has entered into the Option Agreement with Mr. Terry Loney (“optionor”) who has the sole and exclusive right to deal with and dispose of all 100% interest in two (21) unpatented mineral claims, comprising of a total of five (212) claim units.
The consideration payable by the Company to the Optionor for a one hundred (100%) percent interest in properties (subject to Net Mineral Royalty) is fixed and payable under the following terms.
By the issue of 300,000 ordinary shares of the Company on or before December 1st, 2009 and an expenditure commitment by the Company of $80,000 in the first year of assessment work.
By the issue of 400,000 ordinary shares of the Company on or before December 1st, 2010 and an expenditure commitment by the Company of $200,000 in the second year of assessment work.
By the issue of 600,000 ordinary shares of the Company on or before December 1st, 2011 and an expenditure commitment by the Company of $400,000 in the third year of assessment work.
Upon full work commitment expenditure totaling $680,000 and issue of 1,300,000 ordinary shares, the option shall have been fully exercised and the Company will wholly own the properties and subject only to payment of 2.5% Net Mineral Royalty to the Optionor. The Company has the right at any time to prepay the above considerations and exercise its option to acquire the properties.
The Company has the right to purchase from the Optionors the 2.5% Net Mineral Royalty at any time during the term of the Option Agreement by paying one million shares of the Company to the Optionor.
Duration Resources Limited (“DRL”) or its nominee, an associate of the Company, has agreed to fund the first year assessment work of $80,000 in return for a Royalty of 2.5% in accordance with the terms of the Option Agreement.