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Magna Terra Agrees To Sell Minority Interest in Verneuil Project to SOQUEM As the Company Continues To Focus on Its Atlantic Canada Gold Projects
TORONTO, ON / ACCESSWIRE / August 19, 2021 / Magna Terra Minerals Inc. (the "Company" or "Ma...
About this update from Magna Terra Minerals Inc
[{"type":"text","content":"Magna Terra Agrees To Sell Minority Interest in Verneuil Project to SOQUEM As the Company Continues To Focus on Its Atlantic Canada Gold ProjectsTORONTO, ON / ACCESSWIRE / August 19, 2021 / Magna Terra Minerals Inc. (the \"Company\" or \"Magna Terra\") (TSXV:MTT) is pleased to announce that it has entered into a Letter of Intent (the \"Agreement\") to sell its minority interest in the Verneuil Project (\"Verneuil\") to SOQUEM Inc. (\"SOQUEM\"). Verneuil has been governed by an Option and Joint Venture Agreement signed in 1997 between SOQUEM and Normabec Mining Resources Ltd (\"Normabec\"). Subsequently, in 2009, Brionor Resources Inc. (a predecessor company to Magna Terra) assumed the Verneuil option, pursuant to an asset purchase agreement with Normabec. Verneuil is a non-core asset in Magna Terra's exploration property portfolio, and thus the Company did not participate in recent exploration programs conducted by SOQUEM, resulting in its ownership position in the joint venture being diluted down to its current 32.778% undivided interest.Transaction HighlightsMagna Terra will receive a $100,000 cash payment on closing;The Company will also receive a Net Smelter Royalty (\"NSR\") on the project of 0.5%, that is purchasable at any time for a cash payment of $250,000; and,Closing is subject to the execution of a Definitive Purchase and Sale Agreement, and is expected to close on or before September 10, 2021.\"We are pleased to monetize this non-core piece of our extensive exploration portfolio, and it allows SOQUEM the maximum flexibility to advance Verneuil going forward, which is an ideal outcome for both parties. This transaction continues to allow Magna Terra to focus on its high-potential projects in Atlantic Canada while also providing continued value for shareholders through vending or partnering non-core assets. The proceeds of the sale of these non-core assets will be utilized to partially pay for our interest in core property assets.\"~ Lew Lawrick, President and CEO, Magna Terra MineralsPayments for Exploration Option AgreementsMagna Terra continues to focus on projects in Atlantic Canada and accordingly has elected to continue to earn into several option agreements that it holds on the Cape Spencer and Great Northern Projects for 2021 and 2022.Under the terms of the Cape Spencer option agreement, the Company can earn a...