Business
Quadro Announces Option to Acquire Staghorn Property, Consolidation, Shares for Debt and $1 Million Financing
Vancouver, British Columbia--(Newsfile Corp. - June 7, 2017) - Quadro Resources Ltd. (TSXV: QR...
About this update from Quadro Resources Ltd.
[{"type":"text","content":"Quadro Announces Option to Acquire Staghorn Property, Consolidation, Shares for Debt and $1 Million FinancingVancouver, British Columbia--(Newsfile Corp. - June 7, 2017) - Quadro Resources Ltd. (TSXV: QRO.H) (\"Quadro\" or the \"Company\") is pleased to announce that it has entered into an agreement (the \"Option Agreement\") with Metals Creek Resources Corp. (TSXV: MEK) (\"Metals Creek\") and Benton Resources Inc. (TSXV: BEX) (\"Benton\") whereby Quadro will be provided with an option to acquire a 100% interest in Metals Creek's and Benton's Staghorn property, located in Newfoundland, and all rights to their newly optioned Rose Gold property (the Rose Gold property is contiguous with the northern border of the Staghorn property, and is further described in Metals Creek's press release of April 12, 2017) (collectively the \"Option\"). Under the terms of the Option Agreement, Quadro must complete a 2:1 share consolidation, settle certain outstanding debts and payables, complete no less than a $1 million financing, and issue 4,000,000 common shares (post-consolidation) to each of Metals Creek and Benton. Quadro must also assume all of Metals Creek's and Benton's obligations under the Rose Gold property option, for which the optionor has agreed to accept common shares of Quadro in lieu of the 225,000 common shares of Metals Creek and 225,000 common shares of Benton (450,000 shares combined) originally negotiated. The Option Agreement will be subject to a royalty to be granted in favor of Metals Creek and Benton (the \"Metals Creek/Benton Royalty\"), as well as existing royalties held by Ed Northcott and Gilbert Lushman (the \"Northcott/Lushman Royalty\"), and by Shawn Rose (the \"Rose Royalty\"), all as outlined below. Figure 1: Northcott/Lushman Royalty MapTo view an enhanced version of Figure 1: Northcott/Lushman Royalty Map, please visit: http://orders.newsfilecorp.com/files/5339/27271_a1496842250122_16.jpgThe Metals Creek/Benton Royalty represents a 3km area of interest that is subject to a 3% NSR in favour of Metals Creek/Benton, 2% of which can be purchased at any time for $2 million;The Northcott/Lushman Royalty represents a 3km area of interest that is subject to: (i) a 2% NSR in favour of Ed Northcott and Gilbert Lushman, 1% of which can be purchased at any time for $1 million; and (ii) a 1% NSR in favour of Metals Creek/B...