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Property Status
- Agreement Terms
The property is 100% owned by Minera Phelps-Dodge Peru S.A.C. Under the terms of the option-joint venture agreement signed by Minera Phelps-Dodge Peru S.A.C. and Minera Antares Peru S.A.C. on March 4, 2005, Antares can earn a 100 percent interest by completing option payments totalling US$15 million over a five-year period. Antares paid US$750,000 upon execution of the agreement. All remaining payments are at the option of Antares.
The option payments are due on each successive anniversary date of the agreement, in the following amounts ($US): $1,250,000, $2,000,000, $2,500,000, $3,500,000 and $5,000,000. Antares will acquire a 100% interest in Haquira upon completion of all option payments. In addition, if a feasibility study is completed on Haquira, Antares will be obligated to make an additional payment to Phelps Dodge equal to US$0.01 for each pound of copper included as part of the mineral resource calculation in excess of 2.2 billion pounds.
Antares has also issued 1.5 million warrants to Phelps Dodge as part of this transaction. Each warrant is exercisable for one common share of Antares. Half of the warrants are exercisable at CDN$1.25 (expired March 15, 2006) for a period of one year and the other half are exercisable a CDN$1.50 (expire March 15, 2007) for a period of two years. The agreement also provides for Antares to pay to Phelps Dodge a portion of the gain realized by Antares if Antares sells the Haquira project within 18 months.
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