Allied Copper Corp. announced the optioning of the Klondike Property, located in Colorado, United States. The Klondike Property consists of 76 unpatented mining claims, a state of Colorado Exploration Permit and an exclusive right to a state lease.
“We are focused on finding opportunities to complement our existing SK Property (SK) with attractive assets in the western United States,” Warner Uhl Executive Chairman Allied Copper said. “Klondike, together with SK both have the potential to become strategically located producing copper mines.”
Uhl said the company plans to drill prospective targets at each property in the first half of 2022.
Allied Copper will incur an aggregate of C$4.75 million in exploration expenditures on the property, with at least C$500,000 to be spent prior to the first anniversary of the closing date.
Allied will issue 7 million common shares and make an aggregate of C$400,000 in cash payments to the Alliance over a three-year period.
Upon completion of these option agreement obligations, the Alliance will transfer 100% interest in the Klondike Property to Allied. Allied will also issue 3 million warrants exercisable for a three-year term at a price equal to the 10-day VWAP of Allied’s common shares at the time of the issuance.
The Alliance will retain a 2% net smelter royalty, which is subject to a buy down provision where Allied may, at its discretion, repurchase half of the royalty for C$1.5 million within 30 days of commercial production.