With reference to its press release dated January 28, 2003, wishes to clarify that the option agreement with dated January 20, 2003, which among other things provided for certain cash and cash and/or share payments to certain underlying claim holders, also includes payments to the underlying holders of the CPW claim. Specifically, the option payments not referenced in the January 28, 2003, press release are in the amount of $51,000, payable in cash and/or shares on each of January 20, 2009, and the first, second and third anniversaries following such date, subject to the acceptance of the TSX Venture Exchange for any share issuances thereunder. Pursuant to the option agreement, if the final payment to the underlying holders is made on January 20, 2012, will have earned a 100% interest in the CPW claim, subject to a 2.5% net smelter return royalty on production from the area of the claim payable to the underlying holders.
The CPW claim comprises part of Spanish Mountain property in central British Columbia, and the CPW claim consists of 4 claim units out of a total of 103 claim units optioned from under the option agreement. Under such option agreement, has earned its interest in the remaining 99 claim units, 81 of which claim units are subject to a 2.5% net smelter return royalty on production from the area of such claim units. acquired in a plan of arrangement effective June 27, 2008, and since that date has been the wholly-owned subsidiary of.