The Option Agreement
The Option Agreement sets out the terms under which Far
Resources can acquire a 100% interest in the Property subject to a
2% NSR (the “Option”) and further sets out how the
Company can acquire an undivided fifty percent (50%) interest in
the NSR, from Strider.
The Company may exercise the Option by making the following cash
payments and common share issuances to Strider:
- Upon signing the Option Agreement Far Resources will pay to
Strider $25,000 in cash and $25,000 in shares of Far Resources
(paid);
- on or before first anniversary date of the Option Agreement Far
Resources will pay to Strider $50,000 in cash and $50,000 in shares
of Far Resources and spend $50,000 in exploration expenses;
- on or before second anniversary date of the Option Agreement
Far Resources will pay to Strider $50,000 in cash and $50,000 in
shares of Far Resource and have spent an accumulated minimum
expenditure of $100,000 on exploration expenses;
- on or before third anniversary date of the Option Agreement Far
Resources will pay to Strider $50,000 in cash and $50,000 in shares
of Far Resources and have spent an accumulated minimum expenditure
of $150,000 on exploration expenses; and
- on or before fourth anniversary date of the Option Agreement
Far Resources will pay to Strider $75,000 in cash and $75,000 in
shares of Far Resources and have spent an accumulated minimum
expenditure of an accumulated $200,000 exploration expenses by the
end of the first 48 months and an accumulated total of $500,000 on
exploration expenses by the end of the first 84 months.
All shares issued under the Option Agreement will be subject to
a four month and one day statutory hold period from the date of
issuance.
Once the Company has exercised the Option, Far Resources may
acquire acquire an undivided fifty percent (50%) interest in the
NSR, being 1% of the NSR (“Net Smelter Return”), for a one time
payment of $1,000,000 together with any accrued but unpaid NSR at
the time, prior to the commencement of commercial production.
During the option period, Far Resources will be solely
responsible for carrying out and administering exploration,
development and mining work on the Property and for maintaining the
Property in good standing.
Keith Anderson, CEO of Far Resources, commented, “We are
extremely pleased to have acquired this option which includes
claims immediately adjacent to the Thompson Brothers lithium
project. With this acquisition, we now hold all the
land between Zoro and Thompson Brothers. Both of these
properties host historical resources which are the subject of
on-going exploration, while the area in between has received little
exploration. With the positive results received so far from our
Zoro property and others nearby, we look forward to exploring the
newly acquired claims. Far is currently drilling at Zoro, and
we are looking forward to learning more about its potential and
controls on lithium mineralisation. The current drill
program at Zoro will be followed by additional surface exploration
on all our optioned ground to determine the potential for a
mineable resource.”
The technical content of this news release has been reviewed and
approved by Mark Fedikow P.Geo., a qualified person as defined
under NI 43-101.
About the Company
Far Resources Ltd. is an exploration company, publicly traded on
the Canadian Securities Exchange under the symbol FAT, focused on
the identification and development of high potential mineral
opportunities in stable jurisdictions. Far Resources may
acquire or option properties of merit to meet its ongoing goal to
locate, advance and unlock the potential of these mineral
opportunities. Far Resources currently has two mineral
projects in place. The Zoro Lithium project covers a number
of known lithium pegmatite occurrences and is located near Snow
Lake, MB. Manitoba has been ranked as the world’s second best
jurisdiction for mining investment by the Fraser Institute. The
second project is the Winston project in New Mexico, USA, another
historic mining property with potential for silver and gold; New
Mexico is also listed by the Fraser Institute, ranking in the top
25 mining jurisdictions in the world. Please visit our
updated website at www.farresources.com for full details on
our current projects. Far Resources has optioned its wholly owned
Tchentlo Lake Property in British Columbia, Canada to Alchemist
Mining Inc.
###
ON BEHALF OF THE BOARD OF DIRECTORS OF
FAR RESOURCES LTD.
Keith C. Anderson, President
604-805-5035
The Canadian Securities
Exchange has neither approved nor disapproved the contents of
this news release and accepts no
responsibility for the adequacy or accuracy
hereof.
This news release contains forward-looking statements, which
relate to future events or future performance and reflect
management’s current expectations and assumptions. Such
forward-looking statements reflect management’s current beliefs and
are based on assumptions made by and information currently
available to the Company. Readers are cautioned that these forward
looking statements are neither promises nor guarantees, and are
subject to risks and uncertainties that may cause future results to
differ materially from those expected. All of the forward-looking
statements made in this news release are qualified by these
cautionary statements and those in our continuous disclosure
filings available on SEDAR at www.sedar.com. These
forward-looking statements are made as of the date hereof and the
Company does not assume any obligation to update or revise them to
reflect new events or circumstances save as required under
applicable securities legislation. This news release does not
constitute an offer to sell securities and the Company is not
soliciting an offer to buy securities in any jurisdiction in which
such offer, solicitation or sale would be unlawful prior to
registration or qualification under the securities laws of such
jurisdiction.