Under the binding agreement, Everton will issue 15 million treasury common shares to Brigus to acquire the option.
Everton can acquire Brigus’ remaining interest in the concessions by paying Brigus C$500,000 ($476 326.5) cash and an additional C$500,000 ($476 326.5) in cash or common shares with a value of C$500,000 ($476 326.5) by the end of December 2011.
Brigus will also get a sliding scale net smelter return royalty on the concessions equal to 1% when the price of gold is less than $1,000 per ounce, 1.5% when the price of gold is between $1,000 and $1,400 per ounce, and 2% when the price of gold is above $1,400 per ounce.
Everton will also issue Brigus a promissory note equal to the greater of C$5m ($4.76m) or five million common shares of Everton.
