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Chakana Copper Acquires 1.0% NSR Royalty on Soledad Project, Peru
Chakana acquiring 1.0% NSR royalty at a significant discount to existing purchase option agreement. Condor’s future NSR is reduced from 2.0% to 1.0%. Chakana ha
About this update from Chakana Copper Corp.
[{"type":"text","content":" Chakana acquiring 1.0% NSR royalty at a significant discount to existing purchase option agreement. Condor’s future NSR is reduced from 2.0% to 1.0%. Chakana has right to buy-down an additional 0.5% NSR royalty if purchase option agreement is exercised. Chakana pre-royalty payments are eliminated if purchase option agreement is exercised. VANCOUVER, British Columbia, March 19, 2019 (GLOBE NEWSWIRE) -- Chakana Copper Corp. (TSX-V: PERU; OTC: CHKKF; FWB: 1ZX) (the “Company” or “Chakana”), announces that it has purchased a 1.0% Net Smelter Returns (NSR) royalty (the “Royalty”) on the Soledad project from Minera Vertiente Del Sol S.A.C, the registered owner of the Soledad Property and a subsidiary of Condor Resources Inc. The Royalty is independent of the Company’s 100% option agreement with Condor (see Condor news release dated April 25, 2017). Exploration by Chakana has highlighted the property’s gold, copper and silver potential, and the royalty acquisition is in anticipation of continuing success, simplifying the royalty structure and unburdening the Company’s ultimate financial obligations. The purchase price for the Royalty is US$565,000 comprised of US$275,000 in cash and 900,000 Chakana shares. The Royalty covers Condor’s mining concessions and a 2-kilometer area of interest. Chakana previously had the right to re-purchase 50% of the 2% NSR royalty (or a 1% NSR) that would be granted to Condor (the “Condor NSR”) for US$2,000,000 if Chakana exercises its option to purchase Condor’s Soledad concessions. As a result of Chakana purchasing the Royalty now, the option agreement between the parties will be amended to reflect a reduction of the Condor NSR royalty from 2% to 1%, with Chakana having the right to re-purchase 50% of the Condor NSR royalty (or 0.5% NSR) for US$1,000,000 subsequent to exercising the option agreement. If Chakana does not exercise the option agreement to acquire Condor’s Soledad concessions, Condor has the right to purchase 50% of the Royalty (or 0.5% NSR) for US$1,000,000. The amendment to the option agreement also eliminates Chakana’s pre-royalty payment obligations. Chakana’s purchase of the Royalty is subject to TSX Venture Exchange approval. “The purchase of a 1% NSR royalty on a large portion of the Soledad project where twelve of seventeen confirmed breccia pipes occur captures significant value for...