TOC Heating Up! Tocvan/CBI Option Agreement at a Glance:TOC/CBI Option Agreement Outline: TOC Accelerating Share Price .315 as of 15/05/20
- TOC acquires 51% Interest in Pilar project by; a) advancing CBI $125,000. (done), b) issuing 2,000,000 mil common shares (done), c) TOC must complete $2,000,000. of exploration on the property over a five year period and advance Colibri an additional $275,000 over that same period ( TOC has stated that they believe they can fulfill the exploration obligation the 1st year of operations - rapid advancement - sounds great!), d) Tocvan will also issue an additional 1,000,000 shares of the corporation to Colibri on the 3rd, 4th and 5th anniversary dates e). Once the above is satisfied Tocvan will have earned a 51% interest in the property and have the option to acquire the additional 49% interest by making a further $2,000,000 payment to Colibri and issuing a 2% NSR within 6 months after the obligations have been fulfilled.
Summary: Over the five year agreement CBI receives $2,400,000. in payments, 3,000,000 mil common shares, and a 2% NSR which TOC can possibly cut to 1% NSR by paying an additional $1,000,000. mil to CBI. This is quite an agreeent folks which, of course, benefits both companies and doubles CBI's potential.
Comments from the Company Directors:
Mark Smethurst, a Director of Tocvan, commented: “The Pilar property has the right features and system to allow for great potential in defining a multimillion-ounce property.”
Ian McGavney, Colibri’s COO states: “The conclusion of this deal is significant for Colibri as the Company can now firmly focus on advancing its highly prospective Evelyn and El Mezquite gold projects to drilling phases. Colibri will continue to hold a significant interest in Pilar by way of owning a material amount of Tocvan shares and not need to dilute its own share structure to appreciate its upside.”
The full share price potential of CBI rides on the exploration success of both companies. Investors in the know will be keeping their eyes on TOC (very low share structure) as well as CBI.