Osisko Gold Royalties
Osisko Gold Royalties holds a 1% Net Smelter Royalty over the Irish properties, and over the Swedish licenses within the Centerra Gold Strategic Alliance. Osisko is a 18.91% shareholder in Erris Resources.
Centerra Gold Strategic Alliance
Erris Resources entered into a Strategic Alliance with Centerra Gold in December 2015. The alliance covers an Area of Interest (“AOI”) in northern Sweden of 65,796 km².
Centerra funds an ongoing generative programme, typically US$250,000 per annum. Work involves data reviews and target generation, mapping, sampling, geochemical and geophysical surveys and permit applications.
Centerra has the right to elect a ‘Designated Project Area’ (DPA) on any or all of the Erris Resources Exploration Permits (EP) in the AOI. On election of DPA, Centerra can earn a 51% by investing US$1,000,000 within two years from the date of DPA Election. Centerra can acquire an additional 19% interest (total 70%) by expending an additional US$2,000,000 on each project on, also within two years.
Centerra and Erris will contribute pro-rata to further exploration and development or be diluted as per a standard dilution formula. Should either party’s Interest be reduced to 10% or less, then such party’s Interest will automatically be converted to a 1.5% net smelter royalty in the applicable DPA or Joint Venture Company.
Erris Resources is the initial operator of each DPA and receives a management fee, comprising 10% of Eligible Expenses. If a DPA Election is not made, Enyo will continue to own 100% of that EP.