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Melkior Resources Signs the Option Agreement with Green Swan
Melkior Resources Signs the Option Agreement with Green Swan Ottawa, Ontario CANADA, August 15...
About this update from Melkior Resources Inc.
[{"type":"text","content":"\nMelkior Resources Signs the Option Agreement with Green Swan\n\nMelkior Resources Signs the Option Agreement with Green Swan\nOttawa, Ontario CANADA, August 15, 2011 /FSC/ - Melkior Resources Inc.  (MKR - TSX Venture), (\"Melkior\" or the \"Company\") previously announced on July 14, 2011 it had entered into a revised Letter of Intent with Green Swan Capital Corp. (GSW.H - NEX) (\"Green Swan\") whereby Green Swan can acquire up to a 70% interest in the mining areas commonly known as the Riverbank and Broke Back claims (together, the \"Claims\") from Melkior. Green Swan is a Capital Pool Company and intents to have this option to acquire up to 70% of the Claims constitute its Qualifying Transaction (\"QT\").\nThe Company is pleased to announce that the Letter of Intent has been replaced by a formal Option Agreement, which allows Green Swan to earn up to a 70% interest in the Claims, subject to a Net Smelter royalty not to exceed 2.5%. Green Swan may earn an initial 51% interest (\"Option 1\") in the Claims by making cash payments to Melkior of $25,000, issuing in favour of Melkior 1,500,000 common shares of Green Swan, issuing in favour of Melkior 750,000 warrants (the \"Warrants\"), and incurring a gross amount of $1,000,000 in eligible exploration expenditures on the Claims before December 31, 2014 (the \"Work Program\"). The Warrants are exercisable for a period of 12 months at a price of 15 cents per common share and for a further 12 month period at a price of 25 cents per common share, and have an acceleration clause should Green Swan's shares trade above 30 cents for 20 consecutive trading days. \nIf Melkior carries out any exploration activity on the Claims before the closing of the QT, then by December 31, 2011 Green Swan must reimburse Melkior for the costs of such activity, plus a 10% management fee, which reimbursement and management fee will be deducted against the Work Program. \nUpon exercise of Option 1 outlined above, Green Swan will have to right to elect to proceed with Option 2, under which Green Swan would have the right to earn an additional 19% interest in the Claims by incurring additional exploration expenditures totaling a further $1,000,000 over an additional 24 month time frame. Green Swan may terminate either Option 1 or Option 2 at any time by giving 120 days' advance notice to that effect...