To earn an initial 50% in and to the Property, the Company must make the following cash payments, share issuances and property expenditures:
$100,000 within 7 calendar days of signing the LOI;$200,000 upon entering into of a definitive agreement;$150,000 on or before the six-month anniversary of the definitive agreement;$150,000 on or before the 12-month anniversary of the definitive agreement;$150,000 on or before the 18-month anniversary of the definitive agreement;$150,000 on or before the 24-month anniversary of the definitive agreement;- following the next equity financing completed by the Company for gross proceeds of not less than
$6 million , the Company will issue 9.9% of its then issued and outstanding common shares to F4; $5M on or before the 1-year anniversary of signing the definitive agreement; and$5M on or before the 2-year anniversary of signing the definitive agreement.
Upon the Company earning a 50% interest in the Property, both parties agree to participate in a joint venture for the further exploration and development of the Property, and, if deemed warranted, to bring the Property or a portion thereof into commercial production by establishing and operating a mine.
To earn an additional 20% interest in and to the Property (for a total 70% interest in and to the Property), the Company must make the following cash payments and property expenditures:
$250,000 on or before the 30-month anniversary of signing the definitive agreement;$250,000 on or before the 36-month anniversary of signing the definitive agreement; and$8M on or before the 3-year anniversary of signing the definitive agreement.
Upon the Company exercising the option, F4 shall receive a 2% net smelter royalty (“NSR Royalty”), provided that the Company shall be responsible only for the percentage of the NSR Royalty equal to its percentage interest in the Property. Therefore, if the Company obtains the initial 50% interest, it shall be responsible for 50% of the NSR Royalty; and if the Company obtains the full 70% interest, it shall be responsible for 70% of the NSR Royalty.
About the Murphy
F4's 609-hectare
Qualified Person: The technical information in this news release has been prepared in accordance with the Canadian regulatory requirements set out in National Instrument 43-101 and approved on behalf of F3 by
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Neither the Canadian Securities Exchange nor its Market Regulator (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release.
This news release may contain forward-looking statements based on assumptions and judgments of management regarding future events or results. Such statements are subject to a variety of risks and uncertainties which could cause actual events or results to differ materially from those reflected in the forward-looking statements. These forward-looking statements generally include statements that are predictive in nature and depend upon or refer to future events or conditions, including, but not limited to statements related to the company’s business in general, the ability to complete the transaction, and the timing of completion of the transactions contemplated by definitive option agreement, including the parties' ability to satisfy the conditions or approvals to the consummation of the transaction and the possibility of any termination of the agreement. The Company disclaims any intention or obligation to revise or update such statements.
Source:
2024 GlobeNewswire, Inc., source