XPLR extends closing of property deal with Revival-Phosphate Xplore extends closing of property deal with Revival
2022-08-16 15:25 ET - News Release
Also News Release (C-RVG) Revival Gold Inc
Mr. Wesley Hanson of Xplore reports
XPLORE RESOURCES PROVIDES UPDATE ON THE DIAMOND MOUNTAIN TRANSACTION AND OTHER CORPORATE UPDATES
Further to the news release of June 7, 2022, Xplore Resources Corp. has reached an agreement with Revival Gold Inc. to extend the outside date noted in the mining property purchase agreement with Revival dated June 6, 2022, to Sept. 30, 2022. All other terms and conditions of the purchase agreement remain unchanged.
The Diamond Mountain phosphate project is a 547-hectare state mining lease with a historic measured and indicated resource estimated to be 26.8 million tonnes averaging 19.67 per cent P2O5 in addition to an inferred resource estimated at 23.1 million tonnes averaging 19.67 per cent P2O5. The mineral resource estimate is supported by the technical report titled "Technical Report, Diamond Mountain Phosphate Project, Uintah County, Utah," written by L.D. Henchel, PGeo, PG, with an effective date of Sept. 11, 2014. The technical report is available on SEDAR under Revival's filings.
Terms of the purchase agreement
Under the terms of the purchase agreement, which is subject to TSX Venture Exchange approval, Xplore may acquire up to a 51-per-cent interest in the Diamond Mountain phosphate project and may be earned with the following terms:
- $250,000 cash payment on closing of transaction;
- $250,000 cash payment on the first anniversary of closing;
- Issuance to Revival of such number of common shares in the capital of Xplore as is equal to 19.9 per cent of Xplore's issued capital.
Closing of the transaction is subject to the completion of a minimum $5-million financing by Xplore, terms of which will be announced by way of a subsequent news release.
Wes Hanson, president and chief executive officer of Xplore, noted: "We continue to believe Diamond Mountain represents a rare opportunity to acquire and develop a high-value phosphate resource in the continental United States. The ease of access, surrounding infrastructure, demonstrated resource value and strong demand growth in the phosphate sector all suggest that Diamond Mountain represents a value creation opportunity. We believe general market conditions held back investment in our proposed financing. Our financial advisers have suggested that market sentiment is becoming increasingly positive and that we should be able to complete the financing and close the transaction with Revival Gold by the revised outside date."
Issuance of the payment shares and its underlying securities shall be subject to the receipt of regulatory approvals, including, without limitation, the final approval of the exchange and other conditions.
Perrigo Lake
The company further announces that it has issued 120,000 common shares to Solstice Gold Corp. pursuant to an option agreement announced on Aug. 20, 2021, with respect to the Perrigo Lake property (see the news release dated Aug. 20, 2021, for further information).
Qualified person
Wes Hanson, PGeo, president and chief executive officer of Xplore, registered in the province of Ontario, is the qualified person under National Instrument 43-101 (Standards of Disclosure for Mineral Projects), is responsible for the technical contents of this news release and has approved the disclosure of the technical information contained herein.
About Xplore Resources Corp.
Xplore is a Toronto-based mining exploration company listed on the TSX Venture Exchange under symbol XPLR, and is focused on the acquisition and development of copper and gold projects in the Americas. The company is led by a highly experienced management team and is composed of industry experts with executive and senior management experience in geology, banking, private equity, investor relations and law.