LANDHOLDING AND OWNERSHIP TERMS
The Winston Gold Project includes 5 public (unpatented) lode mining claims contiguous with 16 patented lode claims covering an area of 205 acres (~82 hectares). (For a description of types of claims please refer to the BLM document here.)
The unpatented claims are under mining lease for 5 years commencing May 14th, 2014. The patented claims are under mining lease for a term of 5 years commencing July 15th, 2014.
Management has negotiated favourable lease/acquisition terms of these claims in order to defer costs, maximize returns and protect shareholders:
- $3,500 monthly for 5 years.
- A minimum of $200,000 expenditures on the property annually.
- Claims can be renewed for another 5 year term for $40,000 and monthly payments of $7,000.
- Patented claims can be renewed for an additional 10 years ending 2034, for $40,000 and monthly payments of $5,000.
- The option to purchase all under surface rights and 100 acres of land held by the lessor for a purchase price of $2,000,000.
- Patented claims are subject to a 3% NSR which increases to 4 % if the price of gold exceeds $2,000.
- The unpatented claims are subject to a 2% NSR.