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LiCo Energy Metals Options out Ontario Cobalt Properties to Surge Exploration Inc.
(via TheNewswire) May 8, 2018 / TheNewswire / Vancouver, British Columbia - LiCo E...
About this update from Fuse Battery Metals Inc
[{"type":"text","content":"LiCo Energy Metals Options out Ontario Cobalt Properties to Surge Exploration Inc.(via TheNewswire)\n\n \nMay 8, 2018 / TheNewswire / Vancouver, British Columbia - LiCo Energy Metals Inc. (\"the Company\" or \"LiCo\") TSX-V: LIC, OTCQB: WCTXF announces that has entered into an option agreement with Surge Exploration Inc. (\"Surge\") dated May 7, 2018 (the Agreement\"), whereby Surge may earn an undivided 60% interest in the Glencore Buck Property and the Teledyne Cobalt Property, located in Cobalt, Ontario. The transaction is subject to TSX Venture Exchange (\"Exchange\") approval.\n\n\n \nTerms of the Option:\n\n \n \nPurchase Price -Surge shall pay the Company the sum of $240,000 and issue 1,000,000 fully paid and non-assessable common shares in the capital of Surge upon Exchange Approval. In addition, Surge shall incur an aggregate of $1,536,000 in Exploration Expenditures on the Property on or before two years from the date of the Agreement.\n\n \n \nJoint Venture - Upon Surge having exercised the Option, Surge will have earned an undivided 60% interest in the Property, and the parties will enter into a Commercially Reasonable and Definitive Joint Venture Agreement.\n\n\n \nFinder's fees will be paid on behalf of the transaction in accordance with Exchange policies.\n\n \n \nPursuant to TSXV Policy 5.9 and Multilateral Instrument 61-101 -- Protection of Minority Security Holders in Special Transactions (\"MI 61-101\"), the Option Agreement constitutes a \"related party transaction\" due to the fact that the President and CEO of LiCo is also a director of Surge. The Company relied on Section 5.5(a) of MI 61-101 for an exemption from the formal valuation requirement and Section 5.7(1)(a) of MI 61-101 for an exemption from the minority shareholder approval requirement of MI 61-101 as the fair market value of the transaction did not exceed 25% of the Company's market capitalization. The disinterested members of the board of directors have unanimously approved the transaction and have determined that the purchase price of the transaction is fair to the Company and its shareholders based on the Company's previous positive drilling programs on the properties, two unsolicited expressions of interest from arm's length parties, combined with the purchase price that the Company previously paid to acquire the properties.\n\n \n \nAbout ...