For the Lardeau property option agreement, the underlying owner is Wealth Minerals Ltd (TSX.V: WML), a corporation which is not at arm's length to the Company. Cardero has been granted the exclusive option to acquire a 100% interest in the Lardeau project by issuing an aggregate of 1,400,000 common shares over a four year term are as follows:
Year 1 Anniversary
Year 2 Anniversary
Year 3 Anniversary
Year 4 Anniversary
All of the claims are subject to a 2% net smelter returns royalty. Cardero will have the right to purchase ½ of the royalty applicable to the Ledgend, Enerplus-Tesla, Nico, and Spine properties for a payment of $1,000,000 in cash at any time following date Cardero exercises its right to acquire the properties. A similar buy-back provision applies in relation to the Lardeau project.