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Gossan Resources Announces Sale of Bird River Property for up to $1,610,000 plus a 2% Royalty
Winnipeg, Manitoba--(Newsfile Corp. - April 13, 2023) - Gossan Resources Limited (TSXV: GSS) (F...
About this update from Gossan Resources Limited
[{"type":"text","content":"Gossan Resources Announces Sale of Bird River Property for up to $1,610,000 plus a 2% RoyaltyWinnipeg, Manitoba--(Newsfile Corp. - April 13, 2023) - Gossan Resources Limited (TSXV: GSS) (FSE: GSR) (XETRA: GSR) (the \"Company\" or \"Gossan\") is pleased to announce it has entered into an Asset Sale Agreement and a NSR Agreement (collectively the \"Agreements\") with Grid Metals Corp. (\"Grid\") to transfer the Company's 100% interest on the Company's Bird River Claims. Samuel Pelaez, the Company's President and CEO stated: \"We are excited to initiate a new age of monetization for our legacy property portfolio. The consolidation of our Bird River Claims with Grid Metals, our direct neighbor, and the largest claim holder in the Bird River Sill, is the most logical development path for the Bird River Greenstone Belt. We are confident that the team at Grid can accelerate exploration and development of the area, while also benefitting from the Canadian Critical Minerals Strategy, and from Manitoba's critical minerals mining resurgence. Gossan remains invested and supportive of the development vision as new shareholders and royalty-holders of Grid.\" Bird River Greenstone Belt, ManitobaFigure 1: Gossan's Bird River Claims on the Bird River Greenstone Belt. Map Courtesy of Grid Metals Corp.To view an enhanced version of this graphic, please visit:https://images.newsfilecorp.com/files/2380/162255_4fceb8f634154a09_001full.jpgTerms of the Agreements Gossan has agreed to sell and assign to Grid a three-year option to purchase 100% of the title and interest in and to the Bird River Claims held by Gossan. The total consideration payable to Gossan for the Bird River Claims will consist of the following:(a) $500,000 cash payment on Closing;(b) 1,500,000 Shares of Grid on Closing, subject to regulatory resale restrictions and an escrow;(c) $300,000 cash payment on the first anniversary date from Closing;(d) $300,000 cash payment on the second anniversary date from Closing;(e) the NSR; and(f) A $300,000 Deferred Cash Payment upon the occurrence of the Deferred Payment Event.Upon the completion of points (a) to (e), Gossan will transfer the title to the Bird River Claims to Grid. Grid retains the option to accelerate the completion of points (a) to (e), and the transfer of title at its sole discretion.Net Smelter Royalty (\"NSR\")NSR is defined a...