Doubleview and Hudbay Sign Definitive Option Agreement to Advance the Hat Copper-Gold Porphyry Project - Seite 2

Shirvani noted that Doubleview's drill program at the Hat Property has identified a robust gold-copper porphyry deposit. "With a 2.5 kilometer by 1 kilometer identified zone, Hudbay will have ample targets for its drill campaigns."

Terms of the Option Agreement
Under the terms of the Option Agreement, Hudbay will be the operator and has the right to earn up to a 65% interest in the Hat Property on the following terms:

Hudbay may earn an initial 51% interest in the Hat Property (the "First Option"): by incurring a total of $25,000,000 in exploration expenditures as follows:
                        (i) $2,000,000 in exploration expenditures by the first anniversary date, 
                        (ii) an additional $5,000,000 in exploration expenditures by the second anniversary date, 
                        (iii) an additional $7,000,000 in exploration expenditures by the third anniversary date, and 
                        (iv) an additional $11,000,000 in exploration expenditures by the fourth anniversary date.

• Hudbay must also deliver a resource estimate by the fourth anniversary date to exercise the First Option.

Hudbay may earn an additional 4% interest (cumulative 55% interest) in the Hat Property (the "Second Option") by:

• incurring a total of $15,000,000 in exploration expenditures by the seventh anniversary date;
• completing pre-feasibility study by the seventh anniversary date; and
• paying to Doubleview $1,000,000 in cash by the seventh anniversary date.

Hudbay may earn an additional 10% interest (cumulative 65% interest) in the Hat Property by completing a feasibility study by the tenth anniversary date (the "Third Option").

Under the terms of the Option Agreement, Hudbay may, on a one-time basis, elect to defer one year of exploration expenditures to a later date without extending the length of the agreement or the timeline for earning an interest in the Hat Property.

Upon exercise of the First Option, the Second Option or the Third Option, Hudbay may elect to form a joint venture with Doubleview in respect of the Hat Property.  If Hudbay elects not to proceed with the Second Option, Doubleview has the right to purchase a 2% interest from Hudbay for CAD $500,000, which would result in Doubleview holding a 51% interest in the project and becoming the operator.