Deep-South agreement for St. John property
Tuesday, 27 February 2018
Momentum Public Relations
Press Release: February 28 2018
The TSX Venture Exchange has accepted for filing documentation in connection with an asset purchase agreement dated Dec. 18, 2017, between the company and Sparrowhawk Gold Ltd., whereby the company has acquired a 90-per-cent interest in the St. John project, neighbouring the Kokoya gold mine situated northeast of Liberia. Consideration is as follows:
- Year 1, $20,000 (U.S.) cash payment and 250,000 common shares;
- Year 2, $20,000 (U.S.) cash payment and 250,000 common shares;
- Year 3, $35,000 (U.S.) cash payment and 250,000 common shares;
- Year 4, $50,000 (U.S.) cash payment and 250,000 common shares;
- On the confirmation National Instrument 43-101 inferred resources of 350,000 ounces gold (Au) on the property, 250,000 common shares of issuer will be issued to Sparrowhawk;
- On the confirmation NI 43-101 inferred resources of 750,000 ounces Au on the property, 500,000 common shares of issuer will be issued to Sparrowhawk;
- On the confirmation NI 43-101 inferred resources of 1.5 million ounces Au on the property, 500,000 common shares of issuer will be issued to Sparrowhawk;
- Sparrowhawk shall be entitled to a production bonus of $1-million (U.S.), to be paid 60 days after the day of commercial production commencement;
- Sparrowhawk shall be entitled to hold a 1.5-per-cent net smelter return (NSR) royalty calculated on 100 per cent of production from the property; Deep-South shall hold an option to buy back one-half of the NSR by making a cash payment of $500,000 to Sparrowhawk at any time.
- Published in Deep South Resources Inc.
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