BTU Metals to acquire 80% of Pakwash North property
2021-04-29 16:07 ET – Property Agreement
The TSX Venture Exchange has accepted for expedited filing documentation an option agreement dated March 22, 2021, between GoldON Resources Ltd. and BTU Metals Ltd., whereby GoldON has granted BTU an option to acquire up to 80-per-cent interest in the 3,000-hectare Pakwash North property located adjacent to the east and southeast boundaries of its Dixie Halo project.
Under the terms of the agreement, BTU may acquire 25-per-cent interest in and to the assets upon making cash payments of $35,000 and issuing 600,000 common shares of BTU to GoldON and incur $200,000 exploration expenditures before June 1, 2022. BTU may acquire an additional 35-per-cent interest in and to the assets, for an aggregate total of 60-per-cent interest in and to the assets, upon making cash payments of $40,000 and issuing 400,000 common shares of BTU to GoldON and incur $300,000 in exploration expenditures before June 1, 2023. BTU may acquire an additional 20-per-cent interest in and to the assets, for an aggregate total of 80-per-cent interest in and to the assets, upon issuing 400,000 common shares of BTU to GoldON and incur $500,000 in exploration expenditures before June 1, 2024. The common shares are issuable at a deemed value of 14 cents per share which is subject to a minimum floor price of 11 cents per common share, being the discounted market price.
The underlying property owner, EMX Royalty Corp., is entitled to receive 1.5-per-cent NSR (net smelter return) pursuant to agreements between GoldON and the underlying property owner. Of the NSR, 0.75 per cent can be repurchased for cancellation in consideration of $400,000.
For more information, refer to the company’s news release dated March 23, 2021.
