United Reef to sell 2% NSR on Passendro to Axmin United Reef to sell 2% NSR on Passendro to Axmin
2012-04-04 06:16 PT - News Release
See News Release (C-URP) United Reef Ltd
Mr. Michael Coulter reports
UNITED REEF SELLS NSR ROYALTY TO AXMIN INC.
United Reef Ltd. has entered into an agreement with Axmin Inc. whereby United Reef has agreed to sell to Axmin the 2-per-cent net smelter royalty (NSR) which United Reef holds on the Passendro gold project in the Central African Republic. Axmin has agreed to pay United Reef $250,000, for all of United Reef's right, title and interest in the NSR, by the issuance of 447,038 common shares of Axmin. The number of Axmin shares to be issued was determined by a calculation of the volume-weighted average closing price of Axmin's shares on the TSX Venture Exchange for the 20 days ending on April 2, 2012. The NSR was originally granted to United Reef by Asquith Resources Inc., an Axmin predecessor company, as partial consideration for the original Passendro licence area, pursuant to a purchase agreement dated Jan. 25, 1996, and as amended on May 19, 1999.
Completion of the transaction is subject to receipt of all regulatory and TSX-V approvals. The transaction is expected to close on or about April 12, 2012. The Axmin common shares to be issued under the agreement to United Reef will be subject to a statutory hold period of four months and one day from the date of issue of the shares.