Company: AXREF
Filing Date: 2025-07-28
Form Type: 20-F
Source: 0001654954-25-008549
Chunk: 11

Company: AMARC RESOURCES LTD
Filing Date: 2025-07-28
Form: 20-F
Item: Item 4
Chunk 11
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 the JOY District. Annual optional earn-in expenditures can be accelerated by Freeport at its discretion. Amarc will be operator during the initial earn-in period. Once Freeport has acquired such 60% interest, Amarc and Freeport will proceed to explore and develop the JOY District through a jointly owned corporation with Freeport assuming project operatorship.

Upon Freeport earning such 60% interest, it can elect, in its sole discretion, to earn an additional 10% in the mineral claims comprising the JOY District, plus other rights and interests (for a total 70% interest) by sole funding a further $75 million within the following five years. In May 2025, Amarc announced that Freeport had provided notice under the Mineral Property Earn-In Agreement that it had invested $35 million, under an accelerated time frame, and earned an initial 60% interest in the JOY District. The 2025 program of $10 million is subject to Freeport electing to proceed to fund an additional $75 million in exploration and development programs under Stage 2 of the Agreement, which election is anticipated by Amarc to be made during the third quarter of 2025 (Amarc May 29, 2025 release). At Freeport’s request, Amarc has agreed to continue managing all aspects of the exploration work programs. The approved 2025 program has commenced (Amarc July 16, 2025 release).

Once Freeport has finalized its earned ownership interest at either the 60% or 70% level, each party will be responsible for funding its own pro-rata share of project costs on a 60:40 or 70:30 basis.

Brenda Property Option

In February 2025, Amarc announced that it signed a mineral property option agreement with Canasil Resources Inc. (“ Canasil”) pursuant to which Amarc can acquire 100% interest in 22 mineral claims (44.5 hectares) that are located adjacent to its JOY tenure and immediately to the east of its AuRORA Cu-Au-Ag discovery (Amarc February 11, 2025 release).

The terms of the 5-year option to acquire 100% of the Brenda Property require annual payments of $400,000 with the option to purchase exercise price starting at $8 million if exercised in the first year, and increasing on an annual basis to $12 million in year five. The claims are subject to a 2% net smelter returns royalty of