LODE-STAR MINING INC. (OTCMKTS:LSMG) Files An 8-K Entry into a Material Definitive Agreement
Item 1.01
On October 31, 2019, Lode-Star Mining Inc. (the “Company”) entered into an amendment (the “Amendment”) to the Company’s mineral option agreement with Lode Star Gold, Inc., a private Nevada corporation and the controlling shareholder of the Company (“LSG”), dated October 4, 2014 (the “Option Agreement”).
to the Option Agreement, the Company acquired the sole and exclusive option to earn up to an 80% undivided interest in and to those mineral claims owned by LSG and located in the State of Nevada known as the Goldfield Bonanza Project (the “Property”). On December 11, 2014 (the “Closing Date”), the Company acquired a 20% undivided interest in and to the Property by issuing 35,000,000 shares of its common stock to LSG. In order to earn the additional 60% interest in the Property, the Company is required to fund all expenditures on the Property and pay LSG $5 million in cash from the Property’s mineral production proceeds in the form of a net smelter returns (“NSR”) royalty, each beginning on the Closing Date. Until such time as the Company earns the additional 60% interest, the NSR royalty will be split as to 79.2% to LSG and 19.8% to the Company since the Property is subject to a pre-existing 1% NSR royalty in favor of a third party.
The Option Agreement also provides that if the Company fails to make any cash payments to LSG within one year of the Closing Date, the Company is required to pay LSG an additional $100,000, and in any subsequent years in which the Company fails to complete the payment of the entire $5 million described above, it must make quarterly cash payments to LSG of $25,000 until such time as the Company has earned the additional 60% interest in the Property.
Under the Amendment, the exercise of the 60% option was restructured into two separate 30% options, such that the Company may now earn a 30% interest in the Property (for a total of 50%) (the “Second Option”) by completing the following actions:
| Exhibit Number | Exhibit Description |
| 10.8 | Amendment to Mineral Option Agreement between the Company and LSG dated October 31, 2019 |
Lode-Star Mining Inc. Exhibit
EX-10.8 2 ex10-8.htm AMENDMENT TO MINERAL OPTION AGREEMENT BETWEEN THE COMPANY AND LSG DATED OCTOBER 31,…
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About LODE-STAR MINING INC. (OTCMKTS:LSMG)
Lode-Star Mining Inc., formerly International Gold Corp., is engaged in acquiring exploration-stage natural resource properties. The Company holds interest in and to the mineral claims owned by Lode Star Gold Inc. (LSG). The mineral claims are known as the Goldfield Bonanza Project (the Property). The Property is located in west-central Nevada in the Goldfield Mining District. The claims comprising the Property are located in surveyed sections 35 and 36, Township 2 South, Range 42 East, and in sections 1, 2, 11, and 12, Township 3 South, Range 42 East, in Esmeralda County, Nevada. The Company’s property consists of approximately 31 patented claims and an unpatented millsite claim, covering a total of approximately 460 acres, or 186 hectares. The Company’s primary focus is on the mine permitting process. The Company has not generated any revenues.
