Business
Pure Energy Minerals Announces Third Amending Agreement to Clayton Valley Option and Corporate Update
DENVER, Oct. 15, 2018 (GLOBE NEWSWIRE) -- Pure Energy Minerals Limited (TSX VENTURE:PE) (OTCQB:PEMIF) (the “Company” or “Pure Energy”) announces that it has ent
About this update from Pure Energy Minerals Ltd.
[{"type":"text","content":" DENVER, Oct. 15, 2018 (GLOBE NEWSWIRE) -- Pure Energy Minerals Limited (TSX VENTURE:PE) (OTCQB:PEMIF) (the “Company” or “Pure Energy”) announces that it has entered into a third amending agreement to the Clayton Valley Option Agreement (the “Option Agreement”) with GeoXplor Corp. (“GeoXplor”) and Clayton Valley Lithium (“CVL”). The Option Agreement covers mineral claims in Clayton Valley, Nevada that were the subject of the original agreement with GeoXplor and CVL in 2014, as well as those previously held by Lithium X Energy Corp (“Lithium X”), which were acquired by the Company in May, 2017 (the “Property”). Under the terms of the third amending agreement (the “Amendment”) and subject to approval by the TSX Venture Exchange, the Company has agreed to issue 750,000 shares in its capital to GeoXplor in consideration for entering into the Amendment. In addition, the cash payments to GeoXplor have been amended as follows: Existing Payment Obligations Obligations under Third Amendment (i) US$375,000 on the closing date (paid); (i) US$375,000 on the closing date (paid); (ii) US$150,000 on or before October 1, 2018; (ii) US$75,000 on or before November 1, 2018; (iii) US$225,000 on or before November 2, 2018; (iii) US$300,000 on or before December 31, 2018; (iv) US$250,000 on or before the date that is two years from the Closing Date; and (iv) US$250,000 on or before the date that is two years from the Closing Date; and; (v) feasibility study payment of US $250,000. (v) feasibility study payment of US $250,000. The parties also agreed that the Company will pay all legal fees related to the drafting of the amending agreements to the Option Agreement on or before November 1, 2018. Corporate Update The Company continues to operate with a very low cash balance and a substantial net working capital deficit, although approximately 37% of the deficit is owed to Company insiders. The team is working diligently to seek financing to meet its cash needs, including the new option payment schedule reported above. Discussions regarding equity and debt arrangements are active with multiple interested parties, but there can be no assurance at this time that financings will be completed in time to meet the revised option payment deadline. If the Company fails to make the option payments by the dead...