In November, 2018 Cardero Resource Corp. acquired 100% of the Zonia Copper Oxide Project, located in Arizona.
On August 27, 2015 Cardero entered into an Option Agreement with Redstone Resources Corporation (Redstone), under which Cardero was granted the right to acquire up to a 100% interest in the Property in consideration of, among other things, the aggregate cash payment of US$2,425,000 and issuance of an aggregate of 16,500,000 common shares over a three-year period.
Pursuant to an amendment dated October 3, 2018 Redstone was granted an option to convert US$500,000 of the remaining cash payments to common shares of the Company. Redstone exercised that option and a total of 6,179,099 common shares were issued in lieu of US$500,000 cash (see Company's news release dated October 26, 2018). As a result, the total consideration paid to Redstone has been adjusted to US$1,925,000 cash and 22,679,099 common shares (Table 4).
The Company issued 5,000,000 common shares October 31, 2018, the delivery of which completes all share issuances associated with the acquisition. The final cash payment of US$573,650 is subject to a separate agreement (the "Installment Plan") and is deemed to have been paid in full and on time as per the terms of the Option Agreement. Redstone will begin transfer of the Property to a wholly-owned subsidiary of Cardero, a process that is expected to be complete within 12 weeks. Under the terms of the Installment Plan, the Company will make five equal installments of US$126,060 commencing on November 6, 2018 and ending March 31, 2018, for a total payment of US$630,300.
Table 4: Option Agreement
|Date||Cash to Redstone (USD$)||Cardero Shares|
|Initial Payment||$25,000 (Paid)||-|
|BLM Fees||$26,350 (Paid)||-|
|October 15, 2015||$150,000 (Paid)||1,000,000 (Issued)|
|January 31 2016||$75,000 (Paid)||1,500,000 (issued)|
|July 31 2016||$75,000 (Paid)||-|
|January 31 2017||$450,000 (Paid)||2,500,000 (issued)|
|July 31 2017||-||2,500,000 (issued)|
|January 8 2018||$500,000 (Paid)||4,000,000 (issued)|
|October 26 2018||-||6,179,099 (issued)|
|October 31 2018||$573,650 (being paid)||5,000,000 (issued)|