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Orefinders Completes Option to Acquire Grizzly Gold Project in Chibougamau Québec
Toronto, Ontario--(Newsfile Corp. - February 13, 2023) - Orefinders Resources Inc. ‎(TSXV:...
About this update from Orecap Invest Corp
[{"type":"text","content":"Orefinders Completes Option to Acquire Grizzly Gold Project in Chibougamau QuébecToronto, Ontario--(Newsfile Corp. - February 13, 2023) - Orefinders Resources Inc. ‎(TSXV: ORX) (the \"Company\") is pleased to announce the execution and the completion of the initial payments pursuant to a previously announced mining option agreement (the \"Option Agreement\") with G.L. Geoservice Inc. and Marc Bouchard (the \"Vendors\") wherein the Company was granted an option to acquire a 100% interest in the Grizzly Gold Project (\"Grizzly\" or the \"Project\") in the Chibougamau District of Québec. The Company shall acquire the 100% interest in the Project over a 48 month period through the payment of a total of $450,000 in cash or common shares of the Company (the \"Consideration Payments\"), along with the completion of a total of $750,000 in work obligations on the Project (the \"Work Obligations\"). Payment of the Consideration Payments, if made in common shares of the Company (\"Common Shares\") shall be based on the 15 day volume weight average price in the 15 days prior to the due date of the payment (the \"Deemed Share Price\"). Where the Deemed Share Price is less than $0.045 per Common Share, the Company shall make the ‎Consideration Payment in cash, and where the Deemed Share Price is $0.045 or more, the ‎Company shall make the Consideration Payment in Common Shares.‎The following table outlines the payments and timeframes for the Company to retain the option and acquire 100% ownership of Grizzly:Payment DueValue of Consideration PaymentsWork ObligationsUpon Execution of the Option Agreement$45,000Nil12 months from execution$75,000$150,00024 Months$100,000$150,00036 Months$100,000$200,00048 Months$130,000$250,000Total$450,000$750,000 The Company, upon execution of the Agreement, has paid the initial payment of $45,000 to the Vendors. The Vendors will retain a 2.5% net smelter royalty (\"NSR\") on Grizzly, of which the Company has the right to buy back two-fifths (40% of the aforementioned 2.5% which is equal to 1% of the gross total NSR) thereof from the Vendors, at a price of $1,000,000. No finders fees will be paid in connection with the Option Agreement. About the ProjectThe Grizzly property is comprised of 105 contiguous mining claims and is located 60 kilometres west of the town of Ch...