Subject to satisfaction of the CP, which will trigger the commencement of Altura’s four year, financial spend requirements (Earn-in Period);
(a) LTUM grants Altura the sole right to earn a 60% interest (Earned Interest) in the Claims by conducting exploration and incurring expenditure relating to exploration and assessments including associated resource and feasibility studies of the Claims and expenditure incurred in clause 11 (a),(b),(d) to a value of no less than $US 2,000,000 in aggregate (Expenditure) over the 4 year period commencing on the date that the CP is satisfied (Earn-in Period) with the minimum annual expenditure as follows:
· Year 1 - $US 200,000;
· Year 2 - $US 400,000;
· Year 3 - $US 600,000;
· Year 4 - $US 800,000.
Collectively the Expenditure.
(b) For the avoidance of doubt, each annual year of the Earn-in Period (years1 - 4) will start on the anniversary of the commencement of the Earn-in Period.
(c) In addition to the expenditure commitment detailed in (a) above Altura is required to make payments in cash and shares to LTUM upon execution of the EOA on the following basis:
· Upon signing EOA Altura to pay $US 100,000 and issue the equivalent of $US 100,000 in Altura shares;
· 1st Anniversary - $US 100,000 plus $US 100,000 equivalent in Altura shares;
· 2nd Anniversary - $US 125,000 plus $US 100,000 equivalent in Altura shares;
· 3rd Anniversary - $US 150,000 plus $US 100,000 equivalent in Altura shares;
· 4th Anniversary - $US 150,000 plus $US 100,000 equivalent in Altura shares;
(d) To this end, LTUM grants Altura the unimpeded right to access and conduct exploration on the Claims during the Earn-in Period.
(e) Altura may withdraw from the EOA on 1 month's written notice to LTUM, provided that:
(i) at least $US 500,000 of Expenditure has been funded by Altura.
(f) Altura may at any time (and from time to time) after the date that the CP is satisfied return responsibility for any Claim to the holder of that Claim. From the effective date of such return, the returned Claim will not be included as a Claim set out in clause 6 above.
(g) Altura may choose to accelerate the expenditure commitments detailed in (a) above, and as long as the $US 2,000,000 has been spent, and equivalent cash and share payments as detailed in (c) above have been paid or issued as the case may be, then the provisions will be deemed to have been satisfied and the Earn-in Option satisfied.