MPetersen wrote: I was researching 92 resources when I read about the option to Far Resources of their flagship Hidden Lake project, and I was wondering what this board thought about it? Seems like an odd deal but I can't find anybody talking about it here...
https://www.fscwire.com/newsrelease/92-resources-signs-earn-far-resources-ltd-interest-hidden-lake-property-nwt Vancouver, British Columbia (FSCwire) - 92 Resources Corp. (the “Company”) (TSX.V: NTY) (OTCQB: RGDCF) (FSE: R9G2) is pleased to report that it has signed an agreement granting Far Resources Ltd. (“Far” or “Far Resources”) the right to earn-in up to 90% of the Company’s wholly owned Hidden Lake Lithium Project (the “Project”), Northwest Territories by paying to the Company $50,000 in cash, issuing $1,450,000 in value of Far shares to the Company, and expending $2,300,000 on the Project. The Project is situated within the central parts of the Yellowknife Lithium Pegmatite Belt along Highway 4, approximately 40 km east of Yellowknife.
Far Resources was attracted to the Project by the encouraging results the Company disclosed in several recent news releases. The Company will benefit from bringing in a financially and technically strong partner to further develop the Project, and in the process will become a substantial shareholder of Far Resources with the ability to share in the Project’s success.
Terms of the agreement include:
1. On closing, Far Resources will pay $50,000 cash and issue to the Company $500,000 in value of its shares at a deemed value of $0.90. To earn a 60% interest in the Project, Far must spend $500,000 in exploration expenditures on the Project within one year;
2. On completing its first year’s expenditure obligation, Far Resources will have earned a 60% interest in the Project. They can then choose to exercise an option to acquire an additional 10% for a total of 70% of the Project by issuing to the Company $250,000 worth of Far shares at their then current market value to a maximum of $1.50 per share, and spend $500,000 during the next year in exploration expenditures, or, if Far does not exercise its option, it will be responsible for expending the next $1,000,000 in joint venture expenses before the Company is obligated to make any expenditures;
3. If Far has exercised the option to earn in 70%, it has 2 more options of 10% each, so as to earn up to 90% of the Project, in each case by issuing additional Far Resources shares to 92 Resources ($300,000 in value to earn 80%,and an additional $400,000 in value to earn 90%) and expend additional amounts on the Project within the year after each exercise ($600,000 in expenditures to earn 80%, and an additional $700,000 to earn 90%).
Under the Agreement, Far Resources will become the operator of the Project. That leaves the Company free to become more active with its other projects and consideration of additional properties for exploration and development.
Said Adrian Lamoureux, CEO of 92 Resources: “We have shown that the Hidden Lake project has lots of great potential. Bringing in a partner like Far Resources gives us the ability to develop the project further at no out of pocket cost to us. If the project proves up as well as we hope, and Far Resources exercises its options, we will be a big part of that success through our remaining interest in the project and our share position in Far Resources.
Keith Anderson, CEO of Far Resources added: “We like the potential of the Hidden Lake project. We think it fits in extremely well with our overall mineral development strategy. We look forward to working with 92 Resources as a partner and we have high hopes for Hidden Lake’s prospects.”