VAL-D'OR, QUEBEC--(Marketwired - Sept. 30, 2014) - Cartier Resources Inc. (TSX VENTURE:ECR) ("Cartier") is pleased to announce the execution of a binding letter of agreement with Donner Metals ("Donner") to grant in favour of Donner of an option to purchase an interest of up to 100% in the Dollier Gold Project (the "Project") composed of 40 mining claims.
Initially, Donner have a first option to earn a 50% undivided interest in the Project in consideration for: (a) the issuance of 600,000 common shares of Donner, and (b) an amount of $1,800,000 in exploration expenditures ("Expenditures") on the Project over a period of three (3) year as follows:
| Period Ending |
Expenditures |
Common Shares |
| December 31, 2014 |
$400,0001 |
150,000 Donner Shares |
| December 31, 2015 |
$700,000 |
200,000 Donner Shares |
| December 31, 2016 |
$700,000 |
250,000 Donner Shares |
| Total |
$1,800,000 |
600,000 Donner Shares |
1 Firm commitment
Following the exercise of the first option, Donner may elect to have a second option to earn an additional 25% undivided interest in the Project, over a period of five (5) years, on the basis that in consideration for each additional tranche of 1% interest in the Project, Donner will pay $50,000 in cash to Cartier and will fund $250,000 of Expenditures.
Following the exercise of the second option, Donner may elect to have a third option to earn an additional 25% undivided interest in the Project, over a period of five (5) years, on the basis that in consideration for each additional tranche of 1% interest in the Project, Donner will pay $100,000 in cash to Cartier and will fund in the aggregate $500,000 of Expenditures.
A joint venture will be formed on the earlier of the date on which the second option will terminate, or the third option will terminate. The joint venture agreement will also provide that once the interest of a party in the Project and/or in the Joint Venture becomes less than 10%, such interest shall be transferred to the other party and converted into a 2% NSR, with each tranche of 1% NSR being redeemable for $1,000,000.
This transaction is subject to regulatory approvals.