Business
Lions Bay Capital Inc. Enters into Option Agreement
Vancouver, British Columbia--(Newsfile Corp. - August 25, 2021) - Lions Bay Capital Inc. (TSXV...
About this update from Lions Bay Capital, Inc.
[{"type":"text","content":"Lions Bay Capital Inc. Enters into Option AgreementVancouver, British Columbia--(Newsfile Corp. - August 25, 2021) - Lions Bay Capital Inc. (TSXV: LBI) (\"Lions Bay\" or the \"Company\") announces that on August 23, 2021 the Company entered into an option agreement, which if exercised, enables the Company to enter into a joint venture (\"JV\") on promising rare earth exploration licenses in Western Victoria, Australia. The exploration licenses are held by Savic Pty Ltd. (\"Savic\") and are immediately adjoining and contiguous with the recently announced Koppamurra discovery on the South Australia border with Victoria.The Savic areas comprise two granted exploration licenses covering approximately 920 square km and a pending application. Significantly, the Els predate the Koppamurra discovery by Australian Rare Earths (ASX-AR3). Australian Rare Earths was listed on the Australian stock exchange in July and its prospectus, which is publicly available, contains an extensive independent geological report including additional relevant information regarding the discovery. Australian Rare Earths announced further encouraging drill results in its news release on Tuesday August 24, 2021, which is publicly available. Lions Bay has commissioned an independent geological report on the areas covered by the option agreement, which should be available shortly. Under the terms of the option agreement with Savic, the Company will pay an option fee of AUD $200,000 (CAD $183,000) to enable it to carry out a 4-month evaluation of the area. At the end of the option period the Company has the right to enter a JV agreement under which it can earn a 50 per cent interest in the Savic areas by spending AUD $5.0 million (CAD $4.57 million) over 3 years.At the end of the 4-month period, Savic will have the right to put 100 per cent of the areas to the Company in return for 50 million Lions Bay common shares. This right can only be put if the Lions Bay share price has averaged more than $0.25 for the previous five trading days.As a consequence of this transaction and to broaden its investor base, the Company has resolved to apply for a listing on the ASX. This is expected to be relatively straight forward given the strength of the Company's balance sheet and the fact that the majority of its assets are liquid investments in ASX listed public companies.About...