property agreementMountain Lake, New Island Resources property agreement
Ticker Symbol: C:MOA
Mountain Lake, New Island Resources property agreement
Mountain Lake Resources Inc (C:MOA)
Shares Issued 36,086,438
Last Close 10/18/2010
.90
Monday October 18 2010 - Property Agreement
The TSX Venture Exchange has accepted for expedited filing documentation pertaining to a property transfer agreement dated Sept. 23, 2010, between Mountain Lake Resources Inc. and New Island Resources Inc., pursuant to which the company has a option to acquire a 100-per-cent interest in mining lease No. 190 and two mineral licences comprising 5,100 hectares, located on Glover Island in Newfoundland and Labrador. In consideration, the company will pay $500,000, and issue one million shares and 500,000 warrants upon closing. Each warrant is exercisable for one additional share at a price of $1.20 per share for a two-year period.
The company has also agreed to forgive a loan of $160,000 plus accrued interest and has waived a termination fee pursuant to another agreement. New Island has reserved a 1-per-cent net smelter returns royalty, which reduces to 0.5 per cent after the payment of the first $1.0-million, which is only payable if and when a prior 3-per-cent net smelter returns royalty reserved to a third party has been paid to a maximum of $3-million.