Company: AUST
Filing Date: 2025-03-27
Form Type: 20-F
Source: 0001410578-25-000509
Chunk: 67

Company: Austin Gold Corp.
Filing Date: 2025-03-27
Form: 20-F
Item: Item 6
Chunk 67
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 E& E expenditures on the project by June 30, 2027. The cumulative total includes E& E expenditures incurred on the project to date in the amount of $923,757.

During the earn in period, Austin NV will be the operator of the project.

Once the option to joint venture has been exercised to earn the 51% interest, the Company and Pediment will enter into a joint venture agreement based on the Rocky Mountain Mineral Law Foundation Exploration, Development and Mining LLC Model Form 5A LLC Operating Agreement.

The Company has the option to increase its participating interest by an additional 19% to a total of 70% by incurring an additional C$2,500,000 on E& E expenditures with no time limit, although the Company must continue to pay the underlying property lease payments and BLM and county fees to keep the properties subject to the joint venture in good standing.

There are minimum annual royalty payments required by the Company as part of an underlying agreement within the Kelly Creek Project. On June 6, 2024, the Company and Julian Tomera Ranches, Inc. agreed to amend the terms of the mining lease agreement (the “ Hot Pot Agreement”). Under the sixth amendment, the Company is subject to the following minimum payments:

  September 16, 2021                                $30,000      Paid  
  September 16, 2022                                $30,000      Paid  
  September 16, 2023                                $30,000      Paid  
  September 16, 2024                                $20,000      Paid  
 ───────────────────────────────────────────────────────────────────────
  September 16, 2025                                $20,000            
  September 16, 2026                                $25,000            
  September 16, 2027 and every year thereafter      $30,000            

Table of Contents

Any mineral production on the claims is subject to a 3.0% net smelter return royalty which can be reduced to 2.0% upon payment of $2,000,000. The Hot Pot lease and any additional property within 2.5 miles of the original boundary of the claims is also subject to 1.25% net smelter return royalty in favour of Battle Mountain Gold Exploration Corporation.

On June 1, 2023, the Company gave notice to Pediment that it would drop certain leases and claim holdings within the Kelly Creek Project, as permitted by the option to enter joint venture agreement with amendments.