24/2/15 ann Under the terms of the agreement, Northern Star...

24/2/15 ann

Under the terms of the agreement, Northern Star will:
1. pay Alchemy A$1.45M for the Hermes tenements,
2. acquire Alchemy shares valued at A$500,000 via a placement at 1.5 cents a share, giving Northern Star 15% of the Company and Board representation,
3. earn an interest of up to 80% in Alchemy’s Bryah Basin project (excluding the areas under an existing Independence Group JV) by spending A$400,000 a year over three years, and
4. pay Alchemy a royalty of 1% of Net Smelter Return on refined gold recovered from the Hermes tenements in excess of 70,000 ounces and up to 90,000 ounces.