ERONGO CENTRAL PROJECT
In late 2019, the Company entered a Purchase Agreement to acquire EPL 6162, a gold exploration license in Namibia that is located within the Erongo region of central Namibia (the “EPL 6162 Agreement”). Antler can acquire a 100% interest in EPL 6162 by paying the arm’s length EPL 6162 vendor a cash payment of $2,000, issuing 10,000 common shares of Antler, and by issuing $2,500 of common shares of Antler based on the 10-day volume weighted-average price per common share immediately prior to the date of the EPL 6162 Agreement. Once the license is renewed, Antler must make a further cash payment of $5,000, issue an additional 10,000 common shares and a further $2,500 of common shares of Antler based on the 10-day volume weighted-average price per common share immediately prior to the date of the EPL 6162 renewal. Antler must also incur an additional $50,000 in exploration expenses on EPL 6162 within one year of the renewal date, which has been completed.
The Company paid the EPL 6162 vendor the acquisition fee of $2,000 as well as $5,711 in other acquisition costs and fees during the year ended December 31, 2019. An acquisition payment of $3,700, which represents the value of 30,833 common shares issued per the EPL 6162 Agreement, being 10,000 common shares of Antler and a further $2,500 of common shares, was made during the year ended December 31, 2020. The renewal date cash payment of $5,000 was also made during the year ended December 31, 2020. Further share issuances pursuant to the EPL 6162 Agreement upon the renewal date, being $2,500 of common shares and $3,477 for the value of an additional 10,000 common shares of the Company, have been accrued as at March 31, 2021. These shares were issued subsequent to the year ended March 31, 2021.
Pursuant to the EPL 6162 Agreement, Antler has a right of first refusal to acquire a 100% interest in any gold exploration licenses in Namibia acquired by the vendor within two years from the date of the EPL 6162 Agreement. If Antler decides to acquire a new license from the vendor, the Company must make a cash payment of $7,000, issue common shares of Antler Gold under similar terms as those issued under the EPL 6162 Agreement and incur exploration expenditures of at least $75,000 within one year of the new license acquisition.
During the year ended December 31, 2020, the Company entered an agreement to acquire 100% of a gold exploration license in Namibia known as EPL 7261, which is located adjacent to EPL 6162 (the “EPL 7261 Agreement”). Pursuant to the EPL 7261 Agreement, Antler may acquire a 100% interest in EPL 7261 by paying the arm’s length vendor a cash payment of $7,000, issuing 20,000 common shares of Antler and $5,000 of common shares of Antler based on the 10-day volume weighted- average price per common share immediately prior to the EPL 7261 Agreement. Antler must also incur exploration expenditures of at least $75,000 before the first anniversary of the agreement, which the Company has completed.
During the year ended December 31, 2020, the Company paid the EPL 7261 acquisition fee of $7,000 and issued 65,652 common shares valued at $7,222, which is $5,000 of common shares as well as the value of 20,000 common shares issued.
During the year ended December 31, 2020, the Company entered into an agreement to acquire 100% of a Namibian gold exploration license EPL 6550 (the “EPL 6550 Agreement”) and referred to as the Etiro Dome Project. Pursuant to the EPL 6550 Agreement, Antler may acquire a 100% interest in EPL 6550 by paying the arm’s length vendor a cash payment of $3,500, issuing 10,000 common shares of Antler and $2,500 of common shares of Antler based on the 10-day volume weighted- average price per common share immediately prior to the EPL 6550 Agreement. Antler must also incur exploration expenditures of at least $25,000 before the EPL 6550 renewal date of May 27, 2020, which the Company has completed. Once EPL 6550 is renewed, the Company must make a further cash payment of $5,000 and issue an additional 10,000 common shares and a further $2,500
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of common shares of Antler based on the 10-day volume weighted-average price per common share immediately prior to the date of the EPL 6550 renewal. Antler must also incur additional exploration expenditures of at least $50,000 within one year of renewal.
Pursuant to the EPL 6550 Agreement, Antler has a right of first refusal to acquire a 100% interest in any EPL acquired by the vendor within two years from the date of the EPL 6550 Agreement. If Antler decides to acquire a new EPL from the vendor, the Company must make a cash payment of $8,500, issue common shares of Antler Gold under similar terms as those issued under the EPL 6550 Agreement, and incur exploration expenditures of at least $75,000 within one year of the vendor’s acquisition of the new EPL.
During the year ended December 31, 2020, the Company paid the EPL 6550 acquisition fee of $3,500 and issued 35,945 common shares valued at $3,450, which is $2,500 of common shares as well as the value of 10,000 common shares issued.
During the year ended December 31, 2020, the Company entered into an agreement to acquire an 85% interest in a gold exploration license in Namibia known as EPL 6408 (the “EPL 6408 Agreement”). Pursuant to the EPL 6408 Agreement, Antler may acquire an 85% interest in EPL 6408 by paying the arm’s length vendor a cash payment of N$6,500 (equivalent to CAD$517) upon signing and paying a further N$25,000 (equivalent to CAD$2,040) as well as a final payment of N$25,000 or the issuance of $1,500 of Antler common shares (at the option of Antler) upon the successful transfer of EPL 6408 into a subsidiary of Antler Namibia (Proprietary) Limited. Upon earning the 85% interest in EPL 6408, Antler and the vendor will enter into a standard participating joint venture agreement, including proportionate cash funding obligations, which shall contain terms providing that if the vendor’s interest is reduced to less than 10%, its interest will automatically be converted into a 5% free carried interest which can be purchased by Antler at any time for the payment of $25,000 or the issuance of $25,000 of Antler common shares. The decision to pay cash or issue shares will be at Antler’s option.
During the year ended December 31, 2020, the Company paid the acquisition fee of N$6,500 (CAD$517) and the N$25,000 (CAD$2,040).