Murchison holds a number of gold claims in the Pickle Lake Gold Camp both as 100% owner and 51% in a Joint Venture with White Metal Resources Corp. ("White Metal"). The Company also maintains a 1% NSR on two claims held by PC Gold Inc.
The Pickle Lake properties include:
3 claims covering 738 Ha (51%)
14 claims covering 2,538 Ha (51%)
2 claims covering 463 Ha (100%)
2 claims covering 361 Ha (1% NSR)
In July 2016 (with amendment on February 2, 2017), the Company entered into an agreement with White Metal Resources Corp. ("White Metal") whereby White Metal can acquire all of the Company's interest ("Earned Interest") in its above Pickle Lake Gold properties . White Metal may exercise the option and acquire the Earned Interest by completing all of the following expenditures and cash payments:
(i) pay $10,000 in cash to Murchison at the signing of the agreement (received);
(ii) pay $15,000 in cash to Murchison on or before the date which is 12 months from the date of the agreement (received);
(iii) pay $20,000 in cash to Murchison on or before the date which is 24 months from the date of the agreement.
(iv) spend $1,200,000 over three years beginning on the date of the agreement as follows:
i. complete a work commitment of $900,000 on or before the date which is twenty-four (24) months from the date of the agreement (with at least $250,000 on drilling);
ii. complete a cumulative work commitment of $1,200,000 on or before the date which is thirty-six (36) months from the date of the agreement (with at least $700,000 on drilling).
(v) once the Earned Interest is completed, Murchison will be entitled to a 1% net smelter return (the "NSR") of which fifty percent (50%) can be purchased by White Metal for $1,000,000 and the balance of the other fifty percent (50%) of the said NSR can be purchased for $1,500,000.
Upon completion of the option payments and expenditures, White Metal will deliver a notice to the Company setting out that it has exercised the option, and the date of the option notice shall be deemed to be the date in which White Metal's Earned Interest in the properties pursuant to the option shall be effective, subject to the Murchison's NSR.
On April 7, 2017, White Metal assigned its option and right to acquire the Earned Interest to Ardiden Limited, an Australian exploration company.