Pistol Lake
The Pistol Lake property is located 80 km west of the city of Thunder Bay, consists in 45 claims and covers a total area of 53.5 km².
In October 2008, the Company entered into an option agreement with a local property owner to acquire a 100% interest in the Pistol Lake Property over four years by meeting the following conditions:
• By paying the Vendor a total of $150,000; $50,000 on the second anniversary date of signature of the Agreement, $50,000 on the third anniversary date of signature of the Agreement and $50,000 on the fourth anniversary date of signature of the Agreement. Half of the third payment, or $25,000, can be executed by the issuance of a number of common shares representing the sum $25,000 according to market price at the time of the last installment;
• By issuing the Vendor a total of 300,000 Golden Share common shares; 75,000 shares upon signature, 75,000 shares on the first anniversary date, 75,000 shares on the second anniversary date and 75,000 shares on the third anniversary date;
• By incurring a total of $400,000 in exploration expenditures; $100,000 in the first year, $100,000 in the second, $100,000 in the third and $100,000 in the fourth.
Following the acquisition of a 100% interest by Golden Share, the Vendor will retain a 3% Royalty (the "Royalty"). Golden Share will have the right to purchase a portion equal to a first third of the Royalty for $500,000 (1% Royalty). Additionally, Golden Share will have the right to purchase a portion equal to a second third of the Royalty for $1,000,000 (1% Royalty). The Vendor will thereafter retain the final third of the Royalty (1% Royalty).
Moreover, following the acquisition of the 100% interest, Golden Share shall make the Vendor annual advance-royalty payments for a total sum of $20,000 per year. Such yearly advance-royalty payments will be payable each future anniversary date starting on the 5th anniversary date of signature of the agreement. Such payments are to be deducted from any Royalty payments to be made to the Vendor as defined above. Before the 9th anniversary date of signature of the agreement, Golden Share may elect, at its sole discretion, to execute half of the yearly $20,000 payments by the issuance of a number of common shares representing the sum of $10,000 according to the market price at such date.
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