Update - current situation]
Hi, it's really hard to see that stagnation of the share price... caused by that Grabasa situation! Otherwise we could get easy into the 0,07-0,10$ range with this Buttercup Agreement - well done!!! IMHO. We should see some news about PCC in front of the AGM. br />
A smallcaps Update 21th July see below... br />
Have a nice day. GLTA
Fairmont Resources Inc. (FMR:TSX-V)
Website: www.fairmontresources.ca
Current Price: $0.03 (coverage commenced Feb. 18/16 - $0.025)
Fairmont Resources Inc. has announced that it has entered into a binding letter agreement with Prophecy Development Corp. (PCY:TSX) to acquire the fully-permitted Buttercup Iron-Titanium-Vanadium (Fe-Ti-V) project in Quebec, Canada (the Buttercup Project).
Fairmont sees this as a positive transaction in the current market conditions and plans to focus its attention on its quartzite properties in Quebec, as well as look at other opportunities with near term production potential.
Proposed Transaction Summary
Under the terms of the Letter Agreement, Prophecy will acquire the mining claims which constitute the Buttercup Project by paying to Fairmont:
1) At closing, the equivalent of $1,000,000, up to half of which (i.e. $500,000), may at Prophecy's sole discretion, be paid in Prophecy Common shares, calculated based on the 5-day volume-weighted average trading price of such shares as of the closing date; and On the 1-year anniversary date of the closing date, a further $500,000, up to half of which (i.e. $250,000), may at Prophecy's sole discretion, be paid in Prophecy Common shares, calculated based on the 5-day volume-weighted average price of such shares as of the 1-year anniversary date of the closing date.
2) The parties agreed to enter into a definitive agreement before November 1, 2017. Prior to entering into the definitive agreement, Prophecy will carry out its due diligence of the Buttercup project, which will include carrying out exploration activities on the project. Prophecy will be entitled to a break fee in an amount equal to the lesser of $200,000 or 200% of its costs and expenses related to its exploration activities on the Buttercup project if Fairmont receives superior offer that Prophecy choose not to match.
The transaction is subject to customary conditions, due diligence by Prophecy and acceptance of the TSX Venture Exchange.
Fairmont Resources Inc. has announced that the First Instance Court No. 5, Badajoz, Spain has ordered that the company pay Innovacion, Soluciones Y Servicios Para La Commercialiacion S.L. (commercial name Eureka Trading) EUR 575,000 (CAD$840,247.50) in connection with Eureka Trading's claim that the company owes them a success fee for the unsuccessful acquisition of certain assets in Spain belonging to Granitos de Badajoz, S.A. (Grabasa), which is currently in liquidation. Further, the Badajoz City Court has also placed precautionary measures on the company's' deposit of EUR 150,000 placed with the Spanish Mercantile Court No. 1. This EUR 150,0000 deposit formed part of the company's original bid for Grabasa (See news release June 23 2016).
The company and its Spanish legal counsel are currently considering whether to appeal the decision by the deadline of July 28, 2017.
Despite this judgment, the company continues to actively seek partners to complete the acquisition of Grabasa.
QIS Capital: Trading has been sparse for Fairmont Resources due to the delays in the purchase of Grabasa, followed by the court judgment against the company for the success fee payable to Eureka, and now the uncertainty relating to the payment to Eureka. The sale of Buttercup is worth almost twice the success fee and represents more than $0.04 per share in cash and shares