Business
BWR Exploration Executes Definitive Agreement To Acquire 100% Interest In Little Stull Lake Gold Project, Manitoba
TORONTO, ONTARIO--(Oct. 7, 2016) - BWR Exploration Inc. (TSX VENTURE:BWR) ("BWR" or the "Company") is pleased to announce that it has executed a definitive acqu
About this update from Bwr Exploration Inc.
[{"type":"text","content":"TORONTO, ONTARIO--(Oct. 7, 2016) - BWR Exploration Inc. (TSX VENTURE:BWR) (\"BWR\" or the \"Company\") is pleased to announce that it has executed a definitive acquisition agreement, whereby BWR can acquire 100% interest in the Little Stull Lake Gold project in Northern Manitoba from Puma Exploration Inc. (TSX VENTURE:PUM) (\"Puma\"). The closing is subject to the approval of the TSX Venture exchange. Definitive Agreement The main elements of the definitive agreement include: • Cash payments of $150,000 to Puma; the first $50,000 was paid upon signing the LOI on July 11, 2016, there are two additional milestone payments of $50,000 each, payable within 30 days of Edmund Lake and Kistigan Mineral Exploration Licenses being granted and transferred to BWR by Manitoba Department of Natural Resources. • Puma will receive up to 10 million BWR common shares, of which 4,750,000 are subject to escrow provisions. 4,750,000 of the first 5,000,000 securities will be delivered to Puma upon execution and approval of the definitive agreement to be released in increments over a 36-month period, 250,000 shares will similarly be delivered as directed by Puma to a finder. The additional 5,000,000 additional securities are to be delivered to Puma as directed by Puma, upon certain exploration and development milestones being met by BWR over the next several years as follows: o 1 million shares to be issued once 500,000 ounces of gold have been identified in the measured and indicated category; o 1 million additional shares to be issued once 1,000,000 ounces of gold have been identified in the measured and indicated category; o 1 million additional shares to be issued once a positive preliminary economic analysis has been prepared; o 2 million additional shares to be issued upon delivery of positive feasibility study Notwithstanding the above, with respect to the additional 5,000,000 securities, BWR must expend $1.5 million in exploration within the first 36 months of the effective date. Failure on the part of BWR to do so will result in the additional 5,000,000 securities being issued to Puma in accordance with provisions of the escrow agreement. • Puma has ...