Gold Torrent currently has a 70% interest in the project through the formation of Alaska Gold Torrent, LLC, an Alaskan subsidiary owned 30% by Miranda Gold.
On November 11, 2017, the Company entered a LOI with Miranda U.S.A., Inc. in which the Company agrees to purchase Miranda's 30% ownership of and interest in AGT, the 100% owner of the Lucky Shot project. The purchase price to be paid at closing ("Closing") to Miranda for 100% of Miranda's interests in AGT shall be:
- Miranda's project capital contribution of approximately $5M to the AGT construction account.
- $1M payable in cash to Miranda by Company as follows:
- $250,000 paid at Closing
- $250,000 on the first annual anniversary date of Closing, and
- $500,000 on the second annual anniversary date of Closing
- 500,000 Gold Torrent share units (one common share and 1/2 warrant), issued at Closing.
- $4.00 per ounce of gold production paid in cash to Miranda by Company for each ounce produced by the project in excess of 120,000 ounces up to a maximum of 400,000 ounces. The per ounce payment will apply to the 120,001st ounce of gold produced and sold by the Lucky Shot project up to the 400,000th ounce of gold produced and sold by the Lucky Shot project.
- Release Miranda from any and all future claims or cash calls from AGT.
- The Closing shall be held when Company completes its listing on the Toronto Stock Exchange Venture ("TSX-V"), expected in Q1 2018, or such other date as is mutually agreed upon the parties.