Business
Amendment of Cape Spencer Option Agreement
TORONTO, ON / ACCESSWIRE / September 15, 2022 / Magna Terra Minerals Inc. (the "Company" or ...
About this update from Magna Terra Minerals Inc
[{"type":"text","content":"Amendment of Cape Spencer Option AgreementTORONTO, ON / ACCESSWIRE / September 15, 2022 / Magna Terra Minerals Inc. (the \"Company\" or \"Magna Terra\") (TSX-V:MTT) announces that it has entered into an Amendment Agreement (the \"Agreement\") regarding its Cape Spencer Project in southern New Brunswick.Under the original terms of the Cape Spencer option agreement, the Company could earn a 100% interest in the Cape Spencer Property by paying the Optionors a total of $300,000 in cash and $145,000 in milestone payments based on certain exploration activities in cash or equivalent value shares over a five-year period ending August 9, 2023 (refer to the press release dated August 19, 2021). On September 12, 2022, the Company entered into an Agreement whereby it will now earn a 100% property interest by paying the Optionors a total of $350,000 in cash and/or consideration shares and $145,000 in milestone payments based on certain exploration activities in cash or consideration shares, over a seven-year period ending August 9, 2025. The Company has paid $12,500 in cash and will issue 181,159 common shares of the Company to settle the fourth anniversary payment totalling $25,000, after which the Company will have paid a total of $225,000 in cash and consideration shares and $50,000 in milestone payments in consideration shares.The maximum number of shares issuable by the Company with respect to the potential share consideration payment is 3,331,159 shares. All share issuances will be based on the greater of $0.05 per share or the 20-day volume weighted average price on the date a payment is due and the Company elects to make such payment in common shares. Furthermore, the common shares which may be issued under the above-mentioned agreements will be subject to a regulatory 4 month hold period from their date of issuance.Other Exploration Option Agreements:Magna Terra continues to focus on its projects in Atlantic Canada and accordingly has elected to continue to earn into several option agreements that it holds on the Great Northern (Newfoundland) and Cape Spencer (New Brunswick) Projects for 2022 and 2023.Under the terms of the Rattling Brook option agreement, the Company can earn a 100% interest in the Rattling Brook Property (Great Northern Project), by paying the Optionor a total of $45,000 (comprised of $30,000 in cash and $15,000 ...