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Property Status
- Agreement Terms
The Rio Grande property is wholly owned by Mansfield Minerals Inc. (MDR. TSX.V). Under the terms of an option-joint venture agreement between the companies, Antares can earn an initial 50% interest in the property by completing work expenditures totalling US$3,000,000, making option payments totalling US$600,000 and issuing 900,000 shares, all over a four-year period. Antares’ commitment for the first year is to complete work expenditures of US$400,000 and make an option payment of US$25,000. Antares may terminate the agreement at anytime thereafter. If Antares completes the 50% earn-in, it can elect to earn an additional 10% interest by spending an additional US$1.5 million over 18 months (Table 1).
Table 1: Summary of terms of JV agreement between Mansfield and Antares.
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Date
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Annual Work Expenditure
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Cumulative Total
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Cash Payment (US$)
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Share Issuances
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Upon execution of this LOU
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$ 25,000
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1st Anniversary of the
Effective Date
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$ 400,000
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$ 400,000
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50,000
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2nd Anniversary of the
Effective Date
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850,000
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1,250,000
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150,000
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300,000
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3rd Anniversary of the
Effective Date
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750,000
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2,000,000
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175,000
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300,000
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4th Anniversary of the
Effective Date
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1,000,000
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3,000,000
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200,000
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300,000
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Total
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$3,000,000
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$ 600,000
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900,000
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