HSK plans to earn 50% in Strike bet

Located about 16 km north of Matachewan, the property consists of 66 leased and unpatented claims and hosts four gold showings associated with a 3-km shear zone.

To earn the interest, HSK must spend $1 million on exploration over four years, pay Strike $275,000 cash and issue 500,000 HSK shares. During the first year of the agreement, HSK would commit itself to spending $100,000 on exploration, pay out $25,000 in cash and issue 50,000 common shares.

In addition, Strike has granted to HSK the option to acquire 1.25 million common shares at prices ranging from 50 cents to $2.50 per share. Strike can obtain 500,000 HSK shares on similar terms.

The two companies will form a joint venture when HSK has exercised its right to earn a 50% property interest. HSK can increase its interest to 70% by subscribing for a $2-million private placement of Strike common shares at 50 cents each or at the maximum permissible discount from the market price, whichever is greater.

Under a proposed agreement, HSK would act as operator of the exploration program with Strike acting as project manager.

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