Tru Precious agreement for 11 Newfoundland licences
2020-12-10 19:33 ET - Property Agreement
The TSX Venture Exchange has accepted for filing documentation pertaining to an option agreement dated Nov. 18, 2020, between 11436465 Canada Inc., a wholly owned subsidiary of the company, and an arm's-length individual. Pursuant to the option agreement, the company will acquire a 100-per-cent interest in 11 mineral licences covering 224 contiguous claims located in central Newfoundland.
Pursuant to the option agreement, in order to earn a 100-per-cent interest in the property, the company is required to: (i) issue 400,000 common shares to the optionor upon signing of the option agreement and an additional 2.1 million common shares over a three-year period; (ii) pay $25,000 to the optionor upon signing of the option agreement and an additional $200,000 payable over a three-year period; and (iii) incur a total of $500,000 in expenditures in respect of the property before Nov. 18, 2024, with a minimum of $100,000 on or before Nov. 18, 2021. Furthermore, the option agreement is subject to a 2-per-cent net smelter return royalty granted to the optionor, of which the company can repurchase 1.0 per cent for $1-million at any time.
For further details, please refer to the company's news release dated Nov. 19, 2020.