Business
CBLT Sells Northshore Gold for Cash and Equity
Burlington, Ontario--(Newsfile Corp. - June 1, 2020) - CBLT Inc. (TSXV: CBLT) ("CBLT") announc...
About this update from Cblt Inc
[{"type":"text","content":"CBLT Sells Northshore Gold for Cash and EquityBurlington, Ontario--(Newsfile Corp. - June 1, 2020) - CBLT Inc. (TSXV: CBLT) (\"CBLT\") announces that, further to its news release dated April 27, 2020, it has entered into a definitive mineral property purchase and sale agreement dated May 29, 2020 (the \"Agreement\") with Omni Commerce Corp. (FSE: 0MZA) (\"Omni\" or the \"Company\"), an unlisted reporting issuer in good standing. Omni has over one million dollars in its treasury.Omni has agreed to acquire CBLT's right, title and interest in and to its 56% joint venture interest (the \"JV\") in the Northshore Gold Property (the \"Property\"), located in the Schreiber-Hemlo Greenstone Belt, 115 km west of Hemlo and 200 km east of Thunder Bay, on the terms in the Agreement (the \"Transaction\"). Omni will assume the role of operator of the JV on completion of the Transaction (the \"Closing\").Terms of the AgreementThe terms of the Agreement are consistent with the terms of the letter of intent which were announced on April 27, 2020. The total consideration payable to CBLT in respect of the Transaction is $1,450,000 (the \"Purchase Price\"), consisting of: (i) cash consideration of $350,000 (the \"Cash Consideration\"), of which $50,000 has already been paid by way of non-refundable cash deposits, and of which $300,000 is payable on Closing; and (ii) stock consideration of $1,100,000 payable by the issuance of post-Consolidation (as defined below) common shares in Omni's capital on Closing (the \"Consideration Shares\").Prior to the Closing, Omni will undertake a five-for-one consolidation of its issued and outstanding common shares (the \"Consolidation\"). Omni will also complete a private placement financing of subscription receipts, on a post-Consolidation basis, at a price of $0.60 per subscription receipt, each consisting of one share and one common share purchase warrant, for gross total proceeds of not less than $1.5 million (the \"Financing\"). The Consideration Shares to be issued on Closing on a post-Consolidation basis will be issued at a deemed price per share equal to the price of subscription receipts sold in the Financing.All of the Consideration Shares will be subject to the terms of a voluntary escrow agreement, to be entered by the parties prior to Closing, which terms include the release of 25% of the Consideration...