Business
Brixton Metals Receives Initial Payment from Pacific Bay Minerals with Respect to the Earn-In Agreement at its Atlin Goldfields Project
VANCOUVER, British Columbia, July 21, 2022 (GLOBE NEWSWIRE) -- Brixton Metals Corporation (TSX-V: BBB, OTCQB: BBBXF) (the “Company” or “Brixton”) is pleased to
About this update from Brixton Metals Corporation
[{"type":"text","content":" VANCOUVER, British Columbia, July 21, 2022 (GLOBE NEWSWIRE) -- Brixton Metals Corporation (TSX-V: BBB, OTCQB: BBBXF) (the “Company” or “Brixton”) is pleased to announce that its Earn-In partner Pacific Bay Minerals Ltd. (TSXV: “PBM” or “Pacific Bay”) has completed the first phase of the closing agreement, which includes a minimum of $500,000 financing, a NI-43-101 Technical Report by Pacific Bay and regulatory approvals. Under the Agreement, Pacific Bay has the Option to acquire 100% interest in the Atlin Goldfields Project located within the traditional territory of Taku River Tlingit First Nations, Atlin, British Columbia, Canada. Chairman and CEO Gary R. Thompson Stated, “We are delighted that Pacific Bay has completed the first step in our Agreement and look forward to their exploration results in the years to come.” Terms of the Definitive Agreement Under the terms of the Definitive Agreement, Pacific Bay may acquire up to a 100% interest in the Atlin Goldfields Project, by paying Brixton $3,225,000 in cash, issuing to Brixton 10,250,000 Pacific Bay common shares, incurring $7,000,000 in exploration expenditures over 7 years and if completed Brixton shall retain a 2% NSR, as further defined below: 1. Pacific Bay may earn a 51% interest in the Property by completing $3,500,000 in Exploration Expenditures, paying $1,725,000 cash, and issuing 5,250,000 Pacific Bay shares, on or before the 4th anniversary of the closing of the Agreement. 2. If the 51% interest earn-in has been completed, Pacific Bay may earn an additional 49% interest in the Property by completing an additional $3,500,000 in Exploration Expenditures, paying $1,500,000 cash, and issuing 5,000,000 Pacific Bay shares, on or before the 7th anniversary of the closing of the Agreement. 3. If Pacific Bay exercises the 51% earn-in and elects to not exercise the additional 49% earn-in, Pacific Bay and Brixton will enter into a joint venture, whereby the interest in the property will revert to 49% in favour of Pacific Bay and 51% in favour of Brixton, with each party then participating in programs and budgets according to their pro-rata interests. 4. If Pacific Bay completes the Option and acquires 100% of the Property, Brixton will retain a 2% Net Smelter Return Royalty (NSR), with 1% of the NSR purchasable at any time by Pacific Bay for $2,500,000. Table 1. Schedule o...