Upon exercise of the option, Titan must issue six million common shares to Globex and make total cash payments of $4m over 60 months.
Globex retains a gross metal royalty (GMR) on production, and an advance minimum royalty (AMR) payment will begin 72 months from the date of initial payment in the sum of $100,000 per year.
This will be deducted from any future production royalty payments, until such time the claims enter commercial production.
The annual AMR will convert to a 3% GMR on iron ore and other mineral materials upon commencement of commercial production, Titan said.
US-based Titan is focused on the acquisition and development of iron ore exploration and development of mining properties.
