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Catalina Gold Corp. Announces Entry into Letter of Intent, Consolidation and Shares for Debt Transaction
Vancouver, British Columbia--(Newsfile Corp. - December 23, 2019) - Catalina Gold Corp. ( NEX:...
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[{"type":"text","content":"Catalina Gold Corp. Announces Entry into Letter of Intent, Consolidation and Shares for Debt TransactionVancouver, British Columbia--(Newsfile Corp. - December 23, 2019) - Catalina Gold Corp. (NEX: CA.H) (\"Catalina\" or the \"Company\")  announces that it has entered into a non-binding letter of intent dated December 20, 2019 (the \"LOI\") with Clive Brookes and David Heyman (collectively the \"Vendors\") with respect to the acquisition of a platinum group element (PGE) mining project known as the \"Dobbin Claim Group\" (the \"Claims\") representing an area of approximately 2,517 hectares situated North West of Kelowna, B.C. and 17 km North East of the Brenda Cu-Mo Mine (the \"Transaction\"). Pursuant to the terms of the LOI, the Company has the right to acquire a 100% undivided interest in the Claims in consideration of the aggregate payment of $500,000 in cash and the aggregate issuance of up to 2,000,000 Units (as defined herein) on a post-Consolidated basis to the Vendors and grant to the Vendors of a 2.5% net smelter royalty on all products derived from the Claims as further described in the net smelter return royalty agreement to be entered into by the parties. Catalina will issue up to 1,000,000 units (each a \"Unit\") to each Vendor, with each Unit consisting of one common share of Catalina and one warrant to acquire an additional common share of Catalina at a price of $0.10 for period of three years from the closing date of the Transaction.The Company is required to pay each Vendor $20,000 on or before January 3, 2020 and is required to make a cash payment of $25,000 to each Vendor upon entry into the Definitive Agreement and receipt of all required approvals for the Transaction from the TSXV or such other stock exchange that the common shares of Catalina are principally traded on (the \"Exchange\"). The remainder of the consideration is payable in traches for a period of up to four years from the Closing Date. During the period commencing on the Closing Date and ending on the date of execution of the LOI until such time as Catalina resigns as operator, Catalina will be the operator of all exploration programs on the Claims. Catalina has the option to accelerate payment of the consideration at any time after execution of the LOI and acquire 100% title to the Claims. The Company intends to file materials with the E...