Joint Venture Terms
Sunstone holds an 87.5% interest in the Bramaderos project earned through an earn-in joint venture which commenced in 2017. The project is held within the Ecuadorian company La Plata Minerales S.A. or ‘PLAMIN’.
Sunstone is fully funding and managing all exploration activities at Bramaderos.
Joint venture partner Cornerstone's 12.5% interest is loan carried by Sunstone through to the start of commercial production and repayable at Libor plus 2% out of 90% of Cornerstone's share of earnings or dividends from the Bramaderos project.
Approximately 2/3 of the Bramaderos concession surface area is subject to an underlying 2% net smelter returns royalty (NSR) in favour of a third party (the 2% NSR). A $50,000 annual advance royalty is payable on and after the first anniversary of the delivery of a Positive Feasibility Study. One-half of the 2% NSR may be purchased for $3 million.