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Sanatana Enters Into Agreement to Divest its Interest in the Watershed Property
VANCOUVER, BRITISH COLUMBIA--(Marketwired - Jan. 12, 2016) - Sanatana Resources Inc. ("Sanatana" or the "Company") (TSX VENTURE:STA) announces that it has enter
About this update from Gold Strike Resources Corp.
[{"type":"text","content":" VANCOUVER, BRITISH COLUMBIA--(Marketwired - Jan. 12, 2016) - Sanatana Resources Inc. (\"Sanatana\" or the \"Company\") (TSX VENTURE:STA) announces that it has entered into a suite of definitive agreements with Trelawney Augen Acquisition Corp. (\"TAAC\") to divest Sanatana's 50% interest in the Watershed Property (along with all of Sanatana's information/data and drill core related thereto) for total cash consideration of up to C$5,000,000. TAAC is an arm's length party to Sanatana. The cash consideration is comprised of: (i) C$200,000 paid on execution of the suite of definitive agreements, (ii) a further C$1,800,000 paid upon closing, and (iii) contingent payments of up to C$3,000,000 upon satisfaction of certain milestones. In addition to the cash consideration, upon closing TAAC will return 6,987,239 Sanatana common shares to Sanatana for cancellation and grant to Sanatana a 1% net smelter returns royalty. The material terms of the transaction are further outlined below. Peter Miles, President and Chief Executive Officer of Sanatana stated: \"Sanatana's board and management believe that this transaction is in the best interest of shareholders as it provides significant cash consideration and an opportunity for the Company'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 to deploy towards another project/transaction. In light of low commodity prices and extremely difficult capital markets for junior miners, Sanatana is also continuing to review its strategic opportunities.\" Material Terms of the Transaction Pre-Closing and Closing Payments The aggregate purchase price payable for the Watershed Property (and all of Sanatana's information/data and drill core related thereto) by TAAC to Sanatana is: C$200,000 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 (the \"Surface Rights Agreement\"). This payment has been made; A further C$1,800,000 upon closing; and The return of 6,987,239 common shares of Sanatana held by TAAC and its affiliates. Post Closing Continge...