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ArcWest and Interra Copper Sign Letter of Intent to Negotiate an Earn-In and Joint Venture Agreement on ArcWest's Rip Copper-Molybdenum Porphyry Project, B.C.
Vancouver, British Columbia--(Newsfile Corp. - September 19, 2023) - ArcWest Exploration Inc. (TS...
About this update from Arcwest Exploration Inc.
[{"type":"text","content":"ArcWest and Interra Copper Sign Letter of Intent to Negotiate an Earn-In and Joint Venture Agreement on ArcWest's Rip Copper-Molybdenum Porphyry Project, B.C.Vancouver, British Columbia--(Newsfile Corp. - September 19, 2023) - ArcWest Exploration Inc. (TSXV: AWX) (\"ArcWest\") is pleased to announce that it has entered into a non-binding letter of intent with Interra Copper Corp. (\"Interra\") to negotiate an earn-in and joint venture agreement on ArcWest's Rip porphyry copper-molybdenum (Cu-Mo) project (\"the Project\") in central British Columbia. A technical presentation for Rip is available for download here.Rip Project Earn-In Agreement with InterraUnder the terms of the letter of intent, Interra has a two-stage option to earn up to an 80% ownership interest in the Rip project over up to an 8-year period. To earn an initial 60% interest (the \"First Tier Earn-in\"), Interra is required to fund $2 million of work expenditures over a 4-year period and make staged cash and share payments to ArcWest totaling $100,000 and 1,050,000 shares, respectively. ArcWest will be the operator during the initial earn-in period. Upon Interra earning such 60% interest, it can elect, at its sole discretion, to earn an additional 20% ownership interest in the Todd Creek project (for a total 80% interest; the \"Second Tier Earn-in\") by over a four year period, completing and delivering to ArcWest a Feasibility Study for the Property, in addition to making staged cash payments to ArcWest totaling $1,000,000 ($250,000 per year). The Second Tier Earn-In period may be extended beyond its initial four year term by up to three years under the following conditions: Interra sole funding work expenditures of at least CAD $2,000,000 per extension year, and;Interra paying ArcWest CAD $100,000 per extension year in addition to the $250,000 required to be paid.Interra does acquire the Second Tier Earn-In, Interra and AWX will fund a joint venture company (\"JVCo\") in proportion to their interests held in JVCo (that is, 80% and 20% respectively), or dilute.In the event a production decision is made by the JVCo to place the Property into production, Interra shall arrange project financing for the JVCo, the repayment of which shall be made out of cash flows from the property.If a Party dilutes to less than a 10% equity interest in JVCo, then that Party will f...