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Mosaic Minerals Acquires 100% Interest in the Gaboury and 113 North Projects
MONTREAL, July 05, 2022 (GLOBE NEWSWIRE) -- Mosaic Minerals Corporation (CSE: MOC) (“Mosaic” or “The Company”) announces that it has signed an agreement to acqu
About this update from Mosaic Minerals Corp
[{"type":"text","content":" MONTREAL, July 05, 2022 (GLOBE NEWSWIRE) -- Mosaic Minerals Corporation (CSE: MOC) (“Mosaic” or “The Company”) announces that it has signed an agreement to acquire 100% of the interest in the Gaboury project (Témiscamingue, Québec) and 113 North project (Abitibi, Québec) from Fokus Mining Corporation (TSX-V: FKM). Terms of the Agreement To acquire 100% interest in the Gaboury and 113 North projects, Mosaic will issue 5,000,000 common shares of the Company to Fokus Mining Corporation. The latter will also retain a 2% net smelter royalty on both properties. Following the transaction, Fokus Mining Corporation will own 10 million shares or about 16% of the Company. Upon closing of this transaction, the commitments required in the original agreements become obsolete and void. Original Option Agreements In June 2021 (see the press release), Mosaic signed an option agreement with Fokus Mining Corporation to acquire up to 50% interest in the 113 North project : Issuance of 2M shares to Fokus Mining Corporation Investment of $500,000 in exploration expenditure in the following 4 years Formation of a Joint Venture when Mosaic will be vested 50% In May 2021 (see the press release), Mosaic signed an option agreement with Fokus Mining Corporation to acquire up to 80% interest in the Gaboury project : The agreement was structured in 2 tranches: To acquire 60% interest Issuance of 3M shares to Fokus Mining Corporation $150,000 in exploration expenditures within 12 months $850,000 in exploration expenditures within 36 months To acquire 80% interest $500,000 in exploration expenditures per year for the next five years until June 2029 Complete a NI 43-101 Resource Estimate Report including indicated resources. “We are very pleased to make this acquisition. The complete ownership of these two projects positions us advantageously for the future. We intend to become a key player in the base metals exploration sector in Quebec,” Said Jonathan Hamel, Mosaic Minerals President and CEO. The transaction is subject to regulatory approval, including that of the Canadian Securities Exchange. The closing of the transaction is expected to occur on or about July 15, 2022. Gaboury Project The Gaboury project, comprising 95 claims covering an area of approximately 6,064 hectares, is accessible year-round by a provincial road network and a series of forest roads...