The deal for 1200 sq km is fantastic given what they paid and maybe no NSR.
50.5 sq km. For 100% It breaks down to $17 million dollars, 10 million shares, $5 millon on exploration and a 3% NSR. All this for a property a fraction of the size of Canacos aquisition for $600,000 and 70,000 shares. This shows that Canaco is looking after the shareholders and not lining thier own pockets.
They probably kept it low key for a reason.
Mar. 14, 2011 (Filing Services Canada) -- Sidon International Resources Corporation (SD - TSX Venture, SIDNF - OTCBB_Pink_Sheets, SY7 - FWB), (the "Company") has entered into an option agreement with AFGF (Tanzania) Limited to acquire an 80% interest in a property adjacent to the Canaco property in the Handeni area of Tanzania.
The property consisting of approximately 50.5 km2 is located in the eastern portion of the PL 6927/2011 issued to AFGF (Tanzania) Ltd., the optionee, on February 28th, 2011. Preliminary fieldwork has already identified an east-west (030 degrees) trending structure from Kwandege gold area to the west through the Kwamuuhindi hills to the Mtunguru Hill showing. Placer workings either related to this showing or areas to the west are projected onto the property. The Mtunguru showing with reported visible gold and sulphides is associated with quartz veins in amphibolitic rocks.
The option agreement is subject to the approval of the TSX Venture Exchange.
Under the option agreement, the Company may exercise the option to acquire an 80% interest in the property by paying a total of $5,000,000 in cash payments, issuing 10,000,000 shares and incurring $5,000,000 in work expenditures, as follows:
a. paying $1,666,666 and issuing 3,333,3334 common shares within 5 days of TSX Venture Exchange approval of the transaction ("Exchange Approval") and after delivery of NI-43-101 compliant technical report;
b. paying $1,666,667, issuing 3,333,333 common shares and incurring $1,500,000 in work expenditures on or before 13 months from Exchange Approval;
c. paying $1,666,667, issuing 3,333,333 common shares and incurring $1,500,000 in work expenditures on or before 24 months from Exchange Approval; and
d. incurring an additional $2,000,000 in exploration expenditures on or before the third anniversary of Exchange Approval.
The Company will have an option to acquire the remaining 20% of the legal and beneficial interest in the Property by paying further payments of $3,000,000 for each additional 5% interest for a total payment of $12,000,000. Upon acquiring a 100% interest in the Property, the optionor will be entitled to a 3% net smelter return royalty. The Company may repurchase up to 1% of the net smelter return royalty by paying $1,000,000 for each 0.5% net smelter return for an aggregate payment of $2,000,000.