Business
Newpath Resources Exercises Option to Acquire 100% Interest in Core Alpha/Bravo Claims
Vancouver, British Columbia--(Newsfile Corp. - December 6, 2023) - Newpath Resources Inc. (CSE: PATH) (FSE: 0MZ) (OTC Pink: RDYFF) ("Newpath" or the "Company")
About this update from Newpath Resources Inc
[{"type":"text","content":" Vancouver, British Columbia--(Newsfile Corp. - December 6, 2023) - Newpath Resources Inc. (CSE: PATH) (FSE: 0MZ) (OTC Pink: RDYFF) (\"Newpath\" or the \"Company\") is pleased to announce that, further to its news releases dated December 12, 2022 and May 30, 2023, it has satisfied the requirements to acquire a 100% interest to 973 unpatented mineral claims over approximately 206 square kilometers in northwestern Ontario (the \"Property\") pursuant to an option agreement dated December 7, 2022 (the \"Agreement\") between the Company and arm's length parties (the \"Optionor\"). Summary of the Transaction Pursuant to the terms and conditions of the Agreement, the Company acquired the 100% interest in the Property in consideration for an aggregate of 1,500,000 common shares in the capital of the Company (the \"Shares\") registered in the name of the Optionor and the payment of all staking costs related to the acquisition of the Property. Pursuant to the Agreement, the Company issued 500,000 Shares to the Optionor on December 7, 2022 and the remaining 1,000,000 Shares on December 4, 2023. All Shares issued in connection with the Agreement are subject to a four month hold period under applicable Canadian securities laws. The Property is also subject to a Royalty Agreement pursuant to which the Optionor will retain a 2% net smelter returns royalty (the \"Royalty\"), of which 25% may be purchased by the Company for $500,000 up until the fifth (5th) signing anniversary of the Agreement. The remaining 75% of the Royalty may be purchased by the Company for $2,500,000 until the tenth (10th) signing anniversary of the Agreement. Additionally, the Company has agreed to make the following advanced royalty payments to the Optionor, starting on the sixth (6th) signing anniversary of the Agreement: $20,000 per year between the sixth (6th) and tenth (10th) signing anniversaries; $40,000 per year, between the eleventh (11th) and twelfth (12th) signing anniversaries; and $500,000 as a one-time payment on the twenty first (21st) signing anniversary. These payments will be deducted from any Royalty payments. Acknowledgment of First Nations Newpath Resources Inc. is committed to fostering lasting, transparent, trust-based relationships with the Indigenous communities where we operate. We respectfully acknowledge that our Alpha/Bravo project is on the t...