|Lord Nelson Property|
The Lord Nelson claims lie immediately north of Teuton’s Del Norte-Midas property. In 2010, the claims were optioned to Geofine Explorations which subsequently assigned the option to Frontline Gold Corporation, a TSX-V listed company. Frontline Gold also has an option on Geofine’s Poly property, adjoining north of the Lord Nelson claim. Work by Geofine on the Poly property in 2010 disclosed a large gossan close to the border with the Lord Nelson. The Poly property has several geochemical targets.
Frontline can earn a 100% interest in the Lord Nelson claims by paying $210,000 (or $185,000 and a share issuance with a cash value of $25,000) over the five year term of the option. It must also perform $1,200,000 of exploration work over this period. Teuton retains a net smelter royalty of 2%, half of which can be purchased for $1,000,000. An advance royalty of $50,000 per year, indexed to inflation, is also payable to Teuton beginning in 2016.
Although minimal work has been done on the Lord Nelson to date, it is believed that the same prospective horizons which are related to most of the mineralization on the Del Norte property also strike north into the claims.