Graphite royalty purchase extended

Graphite One Resources Inc. Feb. 6 said it has struck an agreement to extend its deadline to buy a 2 percent net smelter return royalty applicable to 28 of its Graphite Creek mining claims.

Pursuant to the original agreement with the vendor of the claims, Cedar Mountain Exploration (Alaska) Inc., a wholly owned subsidiary of Graphite One, had the right to purchase the royalty by Jan. 24, 2015 for C$1 million.

Under a new agreement, the royalty purchase option may now be exercised until Jan. 24, 2017, or six months after the release of a feasibility study on the Graphite Creek property, whichever comes first.

In connection with the extension, Graphite One has agreed to issue to the vendor 769,231 common shares of the company at C13 cents per share.