Business
Cartier Iron Amends Gagnon Holdings Option Agreement Terms and Consolidates Iron Deposits With Historic Resources
TORONTO, ONTARIO--(Marketwired - May 17, 2016) - Cartier Iron Corporation (CSE:CFE) ("Cartier Iron" or the "Company"), is pleased to announce that its Gagnon Ho
About this update from Cartier Silver Corporation
[{"type":"text","content":"TORONTO, ONTARIO--(Marketwired - May 17, 2016) - Cartier Iron Corporation (CSE:CFE) (\"Cartier Iron\" or the \"Company\"), is pleased to announce that its Gagnon Holdings Option and Joint Venture Agreement (the \"Agreement\") with Champion Iron Mines Limited (\"Champion\") has been amended to reflect recent changes to the Company's land holding position in the southern Labrador Trough and a 10% reduction in the Gagnon Holdings property (\"Gagnon Holdings\") earn-in, from a 65% interest to a 55% interest. In order to reduce land maintenance expenditure commitments, Cartier Iron and Champion collaborated to eliminate claims in the Gagnon Holdings demarcated in the Agreement equating to an approximate 40% reduction in the acreage of the original Gagnon Holdings; not including claims that have been added since the signing of the Agreement. As well, Cartier Iron and Champion have agreed to amend the earn-in interest in the Agreement, whereby Cartier Iron will have the option to acquire a 55% interest in the Gagnon Holdings, versus a 65% interest in the original Agreement. As such, with the reduction in acreage and reduced earn-in interest, Cartier Iron and Champion have agreed to a concomitant reduction in required exploration expenditures, from $6.0M to $3.05M, in order for Cartier Iron to fulfil its earn-in obligations, as defined in the Agreement. Cartier Iron has expended sufficient funds to satisfy the revised exploration expenditure requirement in the amended Agreement. Additionally, a portion of the $250,000 payment due by Cartier Iron on December 10, 2015 has been deferred such that $50,000 has been paid and the remaining balance is due on December 10, 2016, together with the final payment of an additional $250,000 ($450,000 in aggregate). On December 10, 2015, Cartier Iron issued the remaining 500,000 shares of the 2.5 million due to Champion pursuant to the terms of the Agreement. Cartier Iron and Champion also concurrently executed a Term Loan Agreement, whereby the demand loan due from Cartier Iron to Champion in the amount of $1,284,716 plus accrued interest was converted to a term loan (\"Term Loan\") repayable on September 30, 2017 having an interest rate of Libor plus 2%. The Agreement was further amended whereby the full repayment of the Term Loan by Cartier Iron to Champion has been added as a condition in order to ...