VANCOUVER, BRITISH COLUMBIA--(Marketwired - June 23, 2015) - Paget Minerals Corp. (TSX VENTURE:PGS), ("Paget" or the "Company") is pleased to announce that further to the Company's news releases on April 27, 2015 and June 16, 2015, it has completed the transaction by which Evrim Resources Corp. (TSX VENTURE:EVM) ("Evrim") has acquired from Paget a 100% interest in the Ball Creek Project in Northwest British Columbia (the "Property") subject to certain royalties set out below.
The 100% interest in the Property acquired by Evrim is subject to a 2% net smelter royalty ("NSR") in favour of Pembrook Mining Corp. ("Pembrook"), a private company from whom Paget originally acquired the Property, on any production from the Property and the following residual payments to Pembrook triggered upon the occurring of the following events: (1) a payment of $1,000,000 upon receiving a geotechnical report in accordance with National Instrument 43-101 Standards of Disclosure for Mineral Projects ("NI 43-101") defining an indicated and inferred mineral resource of not less than 1,000,000 ounces of gold or gold-equivalent; and (2) a further payment of $3,000,000 upon completion of a positive feasibility study (collectively, the "NSR and Milestone Payments").
Paget's President and CEO, David Volkert, commented, "Paget has received an up-front cash payment as well as participation in the future success of the Ball Creek Project through cash or share payments as certain exploration milestones are achieved or as joint venture payments are received by Evrim. The Company intends to remain active as a prospect generator by identifying and acquiring target properties in Canada and the Americas Cordillera."
The Agreement
Paget received payment of $150,000 in connection with closing the transaction and pursuant to its agreement with Evrim is set to also receive the following Evrim shares (or cash equivalent) upon the events set out below:
- 100,000 shares of Evrim within 14 days of Evrim entering into a future option, earn-in or purchase and sale agreement with a third party with respect to the Property (a "Future Agreement");
- 250,000 shares of Evrim upon the completion by Evrim, or any third party with which Evrim has entered into a Future Agreement, of an aggregate of 10,000 metres of drilling;
- 400,000 shares of Evrim upon the announcement by Evrim, or any third party with which Evrim has entered into a Future Agreement, of a measured or indicated mineral resource estimate of at least 500,000,000 tonnes at a grade of at least 0.50% copper equivalent; and
- 500,000 shares of Evrim upon the completion by Evrim, or any third party with which Evrim has entered into a Future Agreement, of a Feasibility Study on the Property.
In addition, pursuant to its agreement with Evrim, Paget is scheduled to receive the following percentages of any future payments received by Evrim from any Future Agreement:
- 40% on or before the first anniversary date of any Future Agreement;
- 30% after the first anniversary date of any Future Agreement and on or before the second anniversary date of any Future Agreement;
- 20% after the second anniversary date of any Future Agreement and on or before the third anniversary date of any Future Agreement; and
- 10% after the third anniversary date of any Future Agreement and on or before the fourth anniversary date of any Future Agreement.
About Paget Minerals Corp.
Paget Minerals Corp. is a publicly traded resource company focused on mineral exploration and as a prospect generator continues to identify and acquire target properties in Canada and the Americas Cordillera.
On Behalf of the Board of Paget Minerals Corp.,
David F. Volkert, President & CEO
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.