RE: Sphere actions improve DPH propectsSphere Resources Inc. Enters Into a Sale and Purchase Agreement to Buy All of Global Minerals Ltd Interest in the Dome Property, Red Lake Ontario
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VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 27, 2011) - Sphere Resources Inc. (the "Company") (TSX VENTURE:SPH.H) is pleased to make the following announcement:
As advised in the Company's press release of 26th November 2009 the Company entered into a Letter of Intent with Global Minerals Ltd ("Global") (which was subsequently superseded by the "Global Option Agreement" date March 7, 2010) in respect to Mining claims at the Dome, Byshe and Heyson Townships in the Red Lake district of Ontario. Global is the beneficial owner of 100% of the rights, title and interest in and to 13 mining claims (34 units) situated in Red Lake, Ontario; known as the "Dome Properties" and described in detail below.
The Company further advised in a press release of March 11, 2010 that it entered into an agreement dated March 7, 2010 (the "Duncan Park Option Agreement") granting to Duncan Park Holdings Corporation ("DPHC") an option to acquire a 75% interest in the Dome Properties, which specifies the requirements of that earn-in, and pursuant to which the Company has the right to claw back 51 percentage points for four times the Duncan Park expenditures, subject to a 2% net smelter royalty ("NSR") held by the original property owners, one percent of which may be acquired for $1,750,000 and one percent of which is subject to a right of first refusal in favour of the Company and Duncan Park.
The Company has decided to purchase the Dome Properties from Global and acquire all of Global's rights, titles and interest to the Dome Properties, which remain subject to the Duncan Park Option Agreement and the Global Clarification Agreement, also executed on March 7, 2010. Upon completion of the purchase and sale of the Dome properties the Duncan Park Option Agreement and the Global Clarification Agreement shall continue to be in full force and effect.