Definitive Purchase and Sale Agreement to Acquire Interest Definitive Purchase and Sale Agreement to Acquire Interest in Certain Mineral Titles
TORONTO, Nov. 01, 2017 (GLOBE NEWSWIRE) -- McChip Resources Inc. (“McChip” or the “Company”) (TSX-V:MCS) is pleased to announce that, subject to the approval of the TSX Venture Exchange, the Company has entered into a definitive purchase and sale agreement executed on the date hereof with respect to certain of its mineral rights in the Rocanville area of Saskatchewan (the “Agreement”), as described more fully below. The purchaser, Altius Royalty Corporation (the “Purchaser”), is a wholly owned subsidiary of Altius Minerals Corporation (TSX:ALS).
The Company is the legal and beneficial owner of certain lands in the Rocanville area of Saskatchewan, and pursuant to certain contractual rights, McChip receives rent and royalty payments from the operator of those properties. The Company has agreed to sell all of its right, title and ownership interest in and to the mines and minerals located within the properties to the Purchaser.
Pursuant to the terms of the Agreement, the Purchaser has agreed to pay $3,000,000 on closing and in addition, an annual royalty of $500,000 for a term of ten years, conditional on certain potash production levels and grades of potash ore being maintained on an annual basis during the term of the Agreement.
As stated by the President and CEO of the Company, Richard McCloskey, the sale contemplated hereby provides McChip with immediate inflow of cash and the opportunity to generate guaranteed cash flow on a term basis.