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Cartier Iron Signs Letter Agreement to Acquire 100% Interest in Big Easy Property
TORONTO, Sept. 28, 2017 (GLOBE NEWSWIRE) -- Cartier Iron Corporation (CSE:CFE) (“Cartier Iron” or the “Company”), is pleased to announce that it has signed a Le
About this update from Cartier Silver Corporation
[{"type":"text","content":"TORONTO, Sept. 28, 2017 (GLOBE NEWSWIRE) -- Cartier Iron Corporation (CSE:CFE) (“Cartier Iron” or the “Company”), is pleased to announce that it has signed a Letter Agreement to earn a 100% interest (“Acquisition”) in the Big Easy Property (“Property”), consisting of 1 Mineral Rights Licence, which includes 278 mining claims covering 69.5 km2, all located in the province of Newfoundland and Labrador. The Property is readily accessible from the Trans-Canada Highway and local roads. The north end of the Property is located approximately 20 kilometres northwest of the town of Clarenville with St. John’s approximately 220 km southeast of the Property. The terms of the Letter Agreement are summarized in Table 1: Table 1: Terms of the Letter Agreement Stage Event Cartier Optionor Exploration Common Interest Interest Spend Shares Earned Retained C$ Issued 1 Sign Definitive Agreement (“Closing”) and Receipt of Exchange Approval 0% 100% N/A 500,000 2 12 Months after Closing 0% 100% 500,000 500,000 3 24 Months after Closing 0% 100% 800,000 500,000 4 36 Months after Closing 100% 0% 1,200,000 1,000,000 Totals 2,500,000 2,500,000 According to the Letter Agreement, Cartier Iron has sixty days to complete a due diligence program and negotiate and execute a Definitive Agreement. The Property is currently subject to an underlying 3% royalty (“Royalty”), of which Cartier Iron would be granted the option to purchase half of the Royalty (1.5%), in exchange for staged payments to the Royalty holders in the aggregate of $700,000 on or before 60 months following the Closing date. Additionally, in connection with the securities issued to the optionor pursuant to the Acquisition, the Definitive Agreement would also include terms whereby the optionor would be restricted from voting in certain circumstances, including not voting against the election of any nominees to the Board of Directors of the Company or against any resolutions supported by the Company’s Board of Directors, for a period of four years following the Closing Date. Tom Larsen, Cartier Iron’s CEO, commented, “I am extremely pleased to have the opportunity to position Cartier Iron in Eastern Newfoundland and move forward on the Big Easy Property. The current property owners have done a grea...