The terms of the option agreement that IWA has with MSQ are a bit fuzzy. "Fuzzy" ?
I have a position in MSQ for some of the reasons you states and for other reasons as well!
Happy investing
"BULLY"!
Mosquito Consolidated Gold Mines -
Wayside options properties from Mosquito
Mosquito Consolidated Gold Mines
MSQ
Shares issued 13,254,009
1998-12-14 close $0.14
Wednesday Dec 16 1998
See International Wayside Gold Mines Ltd (IWA) News Release
Mr. J. Frank Callaghan and Dr. William Malone report
Mosquito Consolidated Gold Mines and Wayside Gold Mines
have agreed that Wayside will have an option to purchase the
remaining 50 per cent of the Cariboo gold quartz mine, 100 per
cent of the Island Mountain mine and 100 per cent of the
Mosquito Creek mine from Mosquito.
Mosquito hereby grants an option to Wayside to purchase the
above-noted interest in the properties, subject only to a net smelter
royalty, in favour of Mosquito, of 3 per cent of net revenues
derived from the production of minerals from the properties.
Mosquito grants Wayside the option to purchase the net smelter
royalty for $4,200,000 (U.S.), such option to be exercised within
12 months of completion of a feasibility study on the properties.
In consideration of Mosquito granting the option to purchase the
properties, Wayside shall pay $100,000 per year option payments
for up to five years to Mosquito to the year Dec. 31, 2002.
Wayside can exercise its option to purchase the properties at any
time; the purchase price is $3,500,000 (Canadian). In the event
Wayside should maintain its option to Dec. 31, 2002 then
Wayside will have the option to pay $3,500,000 by Dec. 31, 2003.
$10,000 shall be payable upon the signing of the letter agreement
(paid).
$10,000 shall be payable on or before Dec. 31, 1998.
$80,000 shall be payable on or before Jan. 31, 1999.
$100,000 shall be payable on or before Dec. 31, 1999.
$100,000 shall be payable on or before Dec. 31, 2000.
$100,000 shall be payable on or before Dec. 31, 2001.
$100,000 shall be payable on or before Dec. 31, 2002.
$3,500,000 shall be payable on or before Dec. 31, 2003.
Upon completion of the purchase payment of $3,500,000 by
Wayside, Mosquito shall transfer title to the properties to
Wayside, free and clear of any liens, charges or other
encumbrances.
Both Mosquito and Wayside will co-operate with each other and
will use its best efforts to have a formal property option agreement
to incorporate the terms of the letter agreement, incorporating all
standard terms normally included in property option agreements
of this sort drafted and executed, within 60 days of the date of the
agreement.
Wayside is responsible for satisfying the outstanding 10 per cent
net profits interest in relation to the property presently held by
Cameron J. McFeely, et al.
Mosquito grants Wayside an option to purchase all the equipment
on the properties owned by Mosquito as of the date of the
agreement.
Mosquito will retain all placer rights to the properties.
(c) Copyright 2000 Canjex Publishing Ltd.
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