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Pasinex Resources Signs Option Agreement to Acquire 80% Interest in Gunman Zinc Project
TORONTO, ONTARIO--(Marketwired - Dec. 7, 2017) - Pasinex Resources Limited (CSE:PSE) (CSE:PSE.CN) (CNSX:PSE) (FRANKFURT:PNX) (The "Company" or "Pasinex") is ple
About this update from Pasinex Resources Ltd.
[{"type":"text","content":"TORONTO, ONTARIO--(Marketwired - Dec. 7, 2017) - Pasinex Resources Limited (CSE:PSE) (CSE:PSE.CN) (CNSX:PSE) (FRANKFURT:PNX) (The \"Company\" or \"Pasinex\") is pleased to announce that, through its wholly-owned subsidiary Pasinex Resources Nevada Limited, it has entered into an option agreement with Cypress Development Corp (TSX VENTURE:CYP) (\"Cypress\") and Silcom Systems Inc. (\"Silcom\") to earn up to an 80% interest in the Gunman zinc project (\"Project\" or \"Gunman\") located in White Pine County, Nevada (\"Option Agreement\"). In essence, Pasinex has acquired the option by honouring the terms of Silcom's original option agreement to acquire an 80% interest from Cypress in the Gunman zinc project. The Option Agreement's total consideration to acquire the 80% interest is staged over four (4) years and is approximately US$1.5 million payable in a combination of cash and Pasinex common shares (assuming a share price of C$0.22 per share and exchange to US dollars of $0.79 using the December 5, 2017 closing price and rate, respectively). In addition, the Company must incur minimum exploration expenditures totalling US$2,950,000 over the same four (4) year period. The Company can accelerate payments to acquire ownership sooner and also has no obligation to continue payments if the Company decides not to proceed in exercising the option. The spending and associated ownership over the four years is as follows: Stages US$ Cash Common Shares US$ exploration expenditures Upfront payment already paid $25,000 Payable upon execution of Option Agreement $100,000 2,200,000 September 11, 2018 $200,000 2,200,000 Prior to December 5, 2018 $250,000 September 11, 2019 $100,000 200,000 Prior to December 5, 2019 $800,000 Prior to December 5, 2020 $800,000 Option to exercise and acquire initial 51% of the Project, followed by a Joint Venture Agreement with Cypress Prior to December 5, 2021 $250,000 200,000 $1,100,000 Option to exercise and acquire remaining 29% of the Project for 80% ownership interest Total $675,000 4,800,000 $2,950,000 President and CEO of Pasinex,Steve Williams said: \"We want to grow Pasinex into a mid-tier zinc company and acquiring this new zinc project is th...