Business
Sanatana Completes Sale of Watershed Property
VANCOUVER, BRITISH COLUMBIA--(Marketwired - March 9, 2016) - Sanatana Resources Inc. ("Sanatana" or the "Company") (TSX VENTURE:STA) has closed the previously a
About this update from Gold Strike Resources Corp.
[{"type":"text","content":"VANCOUVER, BRITISH COLUMBIA--(Marketwired - March 9, 2016) - Sanatana Resources Inc. (\"Sanatana\" or the \"Company\") (TSX VENTURE:STA) has closed the previously announced sale transaction pursuant to which Trelawney Augen Acquisition Corp. (\"TAAC\") acquired Sanatana's 50% interest in the Watershed Property along with all of Sanatana's related information/data and drill core. Peter Miles, President and Chief Executive Officer of Sanatana stated: \"We thank our valued shareholders who voted at the special meeting held earlier this month for overwhelming support for the transaction. The transaction provides significant cash consideration to Sanatana and an opportunity for Sanatana's shareholders to preserve value and maintain exposure to the Watershed Property via the net smelter returns royalty and contingent future payments. This transaction is expected to provide us with the necessary capital required to restructure our operations and leave a cash reserve of more than $1 million to deploy towards another project. In light of low commodity prices and extremely difficult capital markets for junior miners, Sanatana also continues to review its strategic opportunities.\" Major Terms of the Transaction The aggregate purchase price payable by TAAC to Sanatana for the Watershed Property (and all of Sanatana's related information/data and drill core) was: $200,000 paid on execution of the definitive asset purchase agreement, voting support agreements by Sanatana's directors and officers, and an agreement with respect to surface access in favour of TAAC; a further $1,800,000 paid upon closing; and the return of 6,987,239 common shares of Sanatana held by TAAC and its affiliates. Post Closing Contingent Payments TAAC or its permitted assignee will pay Sanatana a further $1,500,000 upon a decision to put all or a part of the Watershed Property into commercial production; TAAC or its permitted assignee will pay Sanatana a further $1,500,000 upon commencement of commercial production of all or a part of the Watershed Property; and TAAC will grant Sanatana a 1% net smelter returns royalty (\"NSR\") on the Watershed Property subject to a buy-out right to TAAC at any time of 0.5% of the NSR for a further cash payment to Sanatana of $2,000,000. TAAC also has a right of first refusal on any sale of the NSR. Full details of the transaction are...