The press release is quoted as saying:
Under the terms of the LOI, Otterburn can earn an 80% interest in the LK Project on payment of $10.5 million in cash and securities to Nortec and by expending $10 million in exploration work within 3 years of signing the Option Agreement (“OA”). The effective date (“Effective Date”) of the OA shall be within five business days after receipt of both CNSX and TSX Venture (collectively, the “Exchange”) acceptance (if necessary) of the OA, and in any event no later than August 30, 2011.
Nortec’s Chairman and CEO, Mohan Vulimiri says:
“Detailed methodical exploration programs from the grassroots level onward have confirmed the potential value of LK project and the potential of the Koillismaa ultramafic layered igneous complex to host other significant PGE deposits. Jan Akkerman and I have recognized this probability over 5 years ago and it was the reason Nortec got actively involved in exploration of this area. Ian Laurent joined Nortec in 2008 and was instrumental for 3-D modeling and putting together the PGE mineralization. I am sure exploration funding from Otterburn will take this project to the next level and to fruition.”