The TSX Venture Exchange has accepted for filing documentation in connection with a settlement agreement dated Sept. 4, 2019, between Aben Resources Ltd. and Sandstorm Gold Ltd., pursuant to which Sandstorm has agreed to waive all amounts owing in connection with yearly minimum advance royalty payments originally due from Aben to Eagle Plains Resource Ltd., pursuant to a letter agreement dated Jan. 28, 2011, between Aben and Eagle Plains, relating to the acquisition of the Hit and Justin claims from Eagle Plains.
Under the settlement agreement, Sandstorm has agreed to waive $250,000 of advance royalty payments in consideration of the following:
The issuance of 750,000 common shares of Aben to Sandstorm;
- The termination of the royalty equal to 3 per cent of net smelter returns royalty from the sale of ore or concentrate or any other products produced from the Hit and Justin claims, and the royalty provisions of the purchase agreement pertaining thereto;
- Aben granting to Sandstorm a new perpetual royalty equal to 2 per cent of net smelter returns over the Hit claims and the Justin claims;
- Aben granting to Sandstorm a perpetual royalty equal to 1 per cent of net smelter returns over the mineral claims, generally referred to as the Forest Kerr mining claims;
- Aben granting to Sandstorm a perpetual royalty equal to 0.75 per cent of net smelter returns over the mineral claims, generally referred to as the RDN claims;
- The assignment by Aben to Sandstorm of a 2.5-per-cent net smelter returns royalty payable by Skyharbour Resources Ltd. to Aben in accordance with the terms of the Mann Lake agreement;
- The assignment by Aben to Sandstorm of the royalty buyback rights set forth in the RDN claims letter agreement, Forgold claims agreement, the Forrest claims agreement and the VF gold claims agreement, and the right to receive from the issuer certain net smelter returns royalties in respect of the mineral claims referred to as the RDN claims, the Forgold claims, the Forrest claims and the VF claims upon the exercise of such buyback rights by Sandstorm.
Insider/pro group participation: nil
For further information, see the Aben news release dated Sept. 18, 2019, which is available under Aben's profile on SEDAR.
© 2019 Canjex Publishing Ltd. All rights reserved.