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Sanatana Resources Announces Cooperative Agreement for Additional Property in Solomon Islands
VANCOUVER, British Columbia, June 17, 2020 (GLOBE NEWSWIRE) -- Sanatana Resources Inc. (“Sanatana” or the “Company”) provides this corporate update. SOLOMON ISL
About this update from Gold Strike Resources Corp.
[{"type":"text","content":" VANCOUVER, British Columbia, June 17, 2020 (GLOBE NEWSWIRE) -- Sanatana Resources Inc. (“Sanatana” or the “Company”) provides this corporate update. SOLOMON ISLANDS New Acquisition and Agreement Sanatana has entered into a letter agreement with Cobre Nuevo Exploration (“CNE”), a private Australian Company. The letter agreement outlines terms for Sanatana to acquire certain additional land in the Solomon Islands and to enter into a joint venture (“JV”) with CNE in order to explore the additional lands. The specific significant terms of the letter agreement are as follows: 1) Funded by CNE, Sanatana will obtain a letter of intent (“LOI”) from the Ministry of Mining for the property to allow the Company to negotiate land access and, with CNE personnel, to conduct an initial due diligence assessment. 2) Upon the property successfully meeting initial due diligence requirements, Sanatana will enter into negotiations with local landowners allowing for a surface access agreement and for the Ministry to grant a prospecting licence. 3) Upon the issuance of the prospecting licence, a joint venture (“JV”) will be formed between Sanatana and CNE on the following terms: A) CNE can fund A$2,500,000 to Sanatana for exploration and upon completion CNE will earn a 51% working interest of the JV. B) CNE can fund a further A$5,000,000 to earn an additional 25% working interest of the JV. C) CNE can fund a further A$7,000,000 to earn an additional 16.5% working interest. Sanatana’s 7.5% working interest can be converted to a 1% net smelter returns royalty, subject to half being purchased by CNE for A$2,500,000 with a one-time right of first refusal on the balance. D) Sanatana can charge a 10% management fee on funds expended on behalf of CNE. Sanatana has initiated the acquisition process for the LOI but there can be no assurance that the property will pass the due diligence process. Further, there can be no assurance that Sanatana will be successful in negotiating a surface access agreement or that a prospecting licence will be issued. Sanatana is working with CNE and the Solomon Islands Ministry of M...