Business
Aston Bay Meets First Condition Precedent of Mou
(via Thenewswire.ca) Vancouver, British Columbia / TNW-ACCESSWIRE / June 26 , 2014 - As...
About this update from Aston Bay Holdings Ltd.
[{"type":"text","content":"Aston Bay Meets First Condition Precedent of Mou(via Thenewswire.ca)\n\n \nVancouver, British Columbia / TNW-ACCESSWIRE / June 26, 2014 - Aston Bay Holdings Ltd. (TSX-V: BAY) (\"Aston Bay\" or the \"Company\") today announced that it has now met the conditions precedent of the recently announced Memorandum of Understanding (\"MOU\") with a wholly-owned subsidiary of Antofagasta plc (\"Antofagasta\") relating to an amendment to the underlying agreement with Commander Resources Ltd. (\"Commander\").\n\n \n \nIn order to accommodate the involvement of Antofagasta, Aston Bay and Commander have agreed to an amendment (\"Amendment\") to the Option Agreement that was signed in November 2011, as previously amended, relating to the Storm Project in Nunavut (\"Option Agreement\"). Aston Bay may now elect to exercise the buy-out option (\"Buy-Out Option\") in the Option Agreement for either CDN$15 million or 20% of Aston Bay's market cap, after the Company has exercised the First Option and earned 50.1% of the property. Aston Bay will have until December 31, 2016 to spend CDN$6 million in exploration on the property and to exercise the First Option. In recognition of the continuing difficult capital markets for funding of exploration projects, and the lack of adequate time to prepare for a large program in 2014, Commander accepts that the work program for 2014 will be primarily aimed at the setting up and positioning of equipment for a larger program in 2015.\n\n \n \n\"These changes give Aston Bay and Antofagasta time to prepare for an exploration program in 2015,\" said Benjamin Cox, President and CEO of Aston Bay. \"We appreciate Commander's willingness to adjust the terms of the Option Agreement and their support of the MOU with Antofagasta.\"\n\n \n \nIn return for the accommodations that Commander has made in the Amendment, and subject to the review and approval of the TSX Venture Exchange (\"Exchange\"), Aston Bay has agreed to accelerate the issuance of 500,000 First Option Consideration Shares of Aston Bay to Commander within 20 business days of the signing of the Amendment. Following receipt of these shares, Commander will hold a total of 3.7 million shares of Aston Bay.\n\n \n \nIn addition, Aston Bay and Commander have agreed to reduce the Area of Mutual Interest from five kilometres to two kilometres surrounding the outermost ...