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Abstract
To maintain the Option in good standing, the Company must issue US$450,000 in securities to Minera Cima in nine tranches over four years. According to the terms of the Option Agreement, two tranches of these securities have been issued to date. The first tranche of 241,160 shares and 138,840 warrants to acquire one additional share at a price of $0.25 for two years were subject to restrictions from trading until January 22, 2006. The warrants expire on September 22, 2007. The second tranche of 229,784 shares and 132,126 warrants to acquire one additional share at a price of $0.255 for two years are restricted from trading until February 28, 2006. The warrants expire October 27, 2007. Each tranche is for US$50,000 in securities of the Company with the number of shares to be issued determined by the market price of the Company's shares at the time.