As business goes, with Kodiak having to spend money (a little over a million) to acquire the option that could lead to this JV, Alto will not be dipping into their funds to gather info on that the property in the Aug 9 press release on what they might have optioned off to Kodiak.

Under the Cote-Archie Agreement, Kodiak has the option (the “Initial Option”) to acquire, first, an undivided 51% interest in and to and, subject to the exercise of the Initial Option, an additional option (the “Additional Option”) to acquire an additional 19% interest in and to the Cote-Archie Property, subject to a 2% net smelter returns royalty (the “Cote-Archie NSR”) in favour of the original owners. Kodiak has agreed to pay $25,000 in cash or shares and to incur exploration expenses of at least $200,000 within one year the “Effective Date” of the Cote-Archie Agreement to acquire the Cote-Archie Option and the Additional Option. The “Effective Date” of the Cote-Archie Agreement is stipulated to be the fifth business day following the day on which Kodiak receives written notice from the TSX Venture Exchange (the “Exchange”) of its acceptance of all filings required to be made with the Exchange in respect of the Cote-Archie Agreement.

The Cote-Archie Option may be exercised by Kodiak paying an additional $25,000 to Alto in cash or in shares on each of the first three anniversaries of the “Effective Date” of the Cote-Archie Agreement, incurring exploration expenses of at least $500,000 (including the $200,000 referred to above) not later than the second anniversary of the Effective Date and incurring exploration expenses of at least $1,000,000 (including the $500,000 referred to above) not later than the third anniversary of the Effective Date, for a total of $100,000 in cash or shares and $1,000,000 in exploration expenses.

The Additional Option may be exercised by Kodiak delivering to Alto, within 180 days after the third anniversary of the Effective Date, written notice of Kodiak’s intention to fund the completion of a feasibility study in respect of the Property or part thereof, and by funding and completing a Positive Feasibility Study within three years after the third anniversary of the Effective Date.

A joint venture will be formed at the time of exercise of the Option or, if the Additional Option is exercised, at the time of exercise of the Additional Option; provided that Alto will have the right for a period of 90 days to elect to transfer its remaining interest in the Property to Kodiak in exchange for a 2.5% net smelter returns royalty.